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Is it permissible to undervalue goods for export to avoid taxes?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
As salam o alaikum Mufti sahab I wish to start a business of Exporting Ladies Suits from India to various countries across the world. My 1st customer, who is also a Muslim, says that while despatching the goods from India to his country (In Africa), I should not declare the actual value of goods which I shall be sending but something less than that. eg: Goods worth Rs. 10,000/- may be declared as Goods worth Rs. 1,000/- in order to avoid Tax/Duty which would be paid by him & by me to the respective Governments. Is this permissible according to The Deen of Allah SWT?

Answer

(Fatwa: 1006/870=B/1429)

The additional income in case of unrevealing the actual value is lawful by Shariah but since it is illegal therefore one should avoid saying something unreal:

الکذب مباح لاحیاء حقہ ودفع الظلم عن نفسہ (الشامی: 9/612)

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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