Netherlands: Tax authorities reject halal mortgage deduction

The Dutch tax service rejected the so called halal-mortgage.  This interest free mortgage was meant for Muslims who due to their convictions could not pay interest.  The interest would have been replaced by a fee on profits, but for this reason may not be presented for mortgage interest tax deduction.

Because financing housing is therefore going to be too expensive, Islamic financial institute Bilaa-Riba has decided to close down.  "We had adjusted our product for the tax service twice, but it continue to think that the mortgage interest deduction is not applicable to our mortgage," according to disappointed spokesperson Hakima Dini.

"We we introduced the idea for the halal mortgage three years ago, we had got thousands of requests for information.  Sadly we couldn't help these people to good housing financing."

Every day the tax service receives submissions from financial institutions to test against the law and will not comment on individual cases.

Three quarters of the Muslims who currently rent a house will buy a residence if there would be a mortgage that complies with the Koran regulations [ed: it's unclear where this figure comes from].  The essence of halal mortgage is that investors or Muslim funds buy a house and then sell it on to the customer with a profit.  The customer then pays a higher sum in installments, without interest.  According to the Koran it's not a sin to make a profit, but it is if the profit comes in the form of interest.

In 2006 the VVD party asked for halal mortgages.  Minister Bos (Finance) promised last year to investigate the possibilities for Islamic banking.

Source: Telegraaf (Dutch)

See also: Netherlands: No tax deduction for halal mortgage, Netherlands: Interest in Muslim loans unclear


Dag said...

Property ownership by the commoners is one of the great leaps forward that we can thank the Enlightenment for. But ownership of property must rest first and foremost on the idea of the person owning his/her own life as private property before any other ownership begins to make any sense in the real world. Without that sense of individuality as the basic premise of ownership, nothing else is valid. If Allah owns you, then what you own is not yours. Your proxy ownership would only mean that property is owned by the ummah in some greater sense, the very opposite of what the people expect from citizenship in a nation of free individuals.

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May be the tax department has found some discrepancies in this halal-mortgage.

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Anonymous said...

"ed: it's unclear where this figure comes from." It comes from two sources, but I have yet to find any scritpural basis for this either. It comes from anti-Semitism, because Jews were money-lenders a thousand years ago when Christians were also forbidden from usury (although this was to keep the Church in power, whereas Muslims don't have a central seat of power, nor did they even under the Ottoman Empire), I believe also without scriptural basis. It also comes from the doctrine of Islamist supremacy whereby they believe themselves to be better than Jews, which is ironic, because usury is the cornerstone of civilization. Without it, Muslims are dependent on corrupt governments to finance their educations, which goes pretty far toward explaining quite a bit right there, and it's what allows people without hundreds of thousands of dollars sitting around to buy homes and build a nest egg. Without usury, there would be no middle class, no American dream. That's why there's no middle class or American dream in the Muslim world. That and college graduates believe that the world is flat and that women produce sperm and that the moon is a lamp, etc.

The Dutch tax service made the right call. It's costing the Dutch way too much in social services to support the Muslimpopulation as it is, and allowing halal mortgage would only hasten their undoing.

Esther said...


I'm saying that I have not seen any study proving the claim. The only study I've seen says that 17% of Muslims in the Netherlands would like such a mortgage. Does that fit in with your view that Muslims must follow the strictest of Koranic law?


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Anonymous said...

I'm honestly not sure what to make of Sharia financing generally, except that it lacks traditional transparency, it's a great way to launder money, and nobody knows where most of that "charitably" laundered money goes, especially since Muslims as a matter of principle don't believe in charity, because that money is not allowed to pass through non-Muslim hands, and because there is not one single legitimate Muslim charity on this planet, nor has there ever been. The closest thing to a Muslim charity is the Muslim Brotherhood, which actually did carry many charitable works in Egypt, but they also support the offspring, Al Qaeda and Hamas. And don't tell me about the Red Crescent, because it's a Christian organization, an offshoot of the Red Cross. I'll have more to say on this matter when I finish 'Alms for Jihad,' which, by the way, is what 'zakat' means, so don't tell me that all Muslims (at least those with the means) are not terrorists, because they finance terrorism with 2.5% of their income every year, best case scenario the spread of terrorist/pro-Taliban propaganda through mosques.

It's still usury though, and even the most moderate Muslims are against usury. It smacks of dependence on Jews and they've been told that it's evil their whole lives. I can see why many Muslims would be against halal mortages: because they're still borrowing money, albeit "charitably" laundered money. I also think it costs more, so if they're willing to compromise their principles, they might as well be smart about it.

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