Using interest to pay tariffs
Question
Further to your answer on using interest money for corporation tax, I have some interest money received from US Government bonds. As you may be aware, the US Government has recently imposed high tariffs (import taxes) that are having a huge impact on business. Can the interest received from US Government bonds be used for these tariffs considering that it is being paid to the US Government?
بسم الله الرحمن الرحیم
Answer
The interest money received from the US Government bonds can be returned to the US Government for any taxes including tariffs (import taxes). For further details, refer to our earlier answer entitled: Can interest money be used for income or corporation tax.
Allah knows best
Yusuf Shabbir
25 Dhū al-Ḥijjah 1446 / 21 June 2025
Approved by: Mufti Shabbir Ahmed and Mufti Muhammad Tahir
