Tax authorities reject halal mortgage deduction

The Dutch tax service rejected a halal-mortgage – an interest free mortgage meant for Muslims who would not have to pay interest, due to their convictions; a fee on profits would have replaced the paid interest. The proposal for a halal mortgage was backed by the Islamic financial institute Bilaa-Riba. Bilaa-Riba introduced the idea three years ago and received thousands of requests for more information and support. The Dutch tax service received submissions from financial institutions, but according to this article, will not comment on individual cases.