Fatwa: # 14920
Category: Financial Transactions
Country: Canada
Date: 27th February 2007

Title

Is it okay to take this CPP benefits in Islam?

Question

I live in Canada and wondering about some very basic information whether they are permitted in  Islam.I'd like to know whether taking money in Child Tax Benefits and welfare is acceptable in Islam?

Let me explain how child tax benefits are paid to a family... Govt. receives taxes from different sources including (but not limited to) alcohol liquor businesses, casinos, and pig farms/slaughter houses. Also, Govt. charges interest/RIBA on individuals who owes Govt. taxes and haven't paid all taxes money even after tax closing date. With Tax money, Govt. makes interest/RIBA based investment becuase of secure nature of investment. Now, it includes haram money and interest/RIBA which Govt. does pay to people including Muslims as a Child Tax Benefits, welfare and subsidized home living.
Knowing all these facts, what do you think taking this money is still acceptable in Islam (one will not die if s/he doesn't take it all)?
Also, there's a pension plan called Canada Pension Plan (CPP) which invests in interest/RIBA based securities because of secure nature of investments. Is it okay to take this CPP benefits in Islam?

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatoh

It is permissible to take benefit from the Child Tax Benefit as well as the other benefits offered by the Government, even though the sources of those benefits are un-Islamic. It is the responsibility of the Government to fulfill the needs of its citizens. If the Canada Pension Fund (CPF) is a Government Fund, then it will be permissible to take benefit from such a fund.

And Allah knows best

Wassalam

Mufti Ebrahim Desai
Darul Iftaa

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