Lahore High Court rules profit-making subsidiaries of charitable trusts must pay Zakat
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- •The Lahore High Court issued the ruling on February 21, 2026.
- •The ruling applies specifically to profit-making subsidiaries of charitable trusts.
- •Zakat is an Islamic tax traditionally paid on wealth and income to support charitable causes.
- •The decision clarifies the tax obligations of charitable organizations involved in commercial activities.
What Could Happen If...
- ▸If charitable trusts comply with the ruling and pay Zakat on profits They may face increased financial obligations, potentially reducing funds available for charitable activities.
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