Taxation for Islamic banking: amendments in legal framework under review: MoF
In #Pakistan the Ministry of Finance stated that amendments in legal framework are under review to strengthen the framework of taxation proposals for Islamic Banking. The initiatives mainly include review of Mudaraba guidelines to align those with overall regulatory framework of Islamic Finance, issuance of Sukuk guidelines, issuance of Takaful rules and government Ijara Sukuk. A multi-tiered Shariah supervisory and compliance framework has been put in place. Also, a Shariah governance framework for Islamic Banking Institutions (IBIs) was formulated, which explicitly defines Shariah related rules and responsibilities of all key organs of IBIs. The initial Minimum Capital Requirement (MCR) for an Islamic Banking subsidiary was revised from Rs 10 billion to Rs 6 billion.
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