Interest Payments as Compensation for Taxes in USA

16-9-2002 | IslamWeb

Question:

I want to know if it is Halal to open a saving account with interest if I am living in a non-Muslim country as USA because they are taking a lot of taxes from me and can this be considered as a compensation because this money is going to a non-Muslim government which uses the tax money to give military help to Israel? I would rather get my tax money back from a saving account rather than paying it as tax which is used to kill Palestinians.

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Answer:

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.

 

A Muslim is not permitted to deposit his money in a usury-taking bank since it is a cooperation in Riba.

Jaabir narrated that the Prophet said “Allah has cursed the one who consumes Riba (i.e. usury or interest), the one who gives it to others, the one who records it and the one who witnesses it (its transaction).” The Prophet   said: “All of them are equal in sin.” [Muslim]

However, if there is any necessity to keep the money in such banks or one fears for his money if he does not deposit it in such banks, then, in this case, he may deposit it there. But taking interest or paying taxes from that money or using it for self-benefit is forbidden. But one may give the interest money to the needy people or spend it in general public welfare with the intention of getting rid of it.

Allah knows best.