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Is this type of invoicing permissible in islam?

Answered according to Hanafi Fiqh by DarulUloomTT.net

Question

Is under invoice permissible in islam? Especially when we live in a country where the duty charge is very high For example, in our place the duty on vehicles are 160% to the price of the vehicle and freight

 

Answer:

Wa Alaikum As Salaam

Under invoicing is regarded to be illegal in a country and there are penalties stipulated for those involved in this offence. The act of under invoicing involves mis declaration of the price of goods which in reality amounts to lying, cheating and deception. As such, this is not permissible in Islam.

Although the duty charge is very high, all citizens who import vehicles are required to pay such duties. It is a law which is imposed on everyone, and as a law abiding citizen one is required to follow this rule.

And Allah Knows Best

Mufti Waseem Khan

12/09/2019

This answer was collected from DarulUloomTT.net, which is operated under the supervision of Mufti Waseem Khan from Darul Uloom Trinidad and Tobago.

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