Taking Government Subsidy To Start A Business

25-11-2019 | IslamWeb

Question:

Asak wrwb.i wanted to start a business but i have little money. Govt. Gives subsidy for staring new business.is it permissible to take subsidy from govt. With govt.subsidy and little of my money i can start business.is it allows in islam.please clarify me.jazakallah khair.
Answer:

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad sallallaahu `alayhi wa sallam ( may Allaah exalt his mention ) is His slave and Messenger.

What we understood from the question is that the government gives a subsidy to those who want to invest in a productive project. If this is the case, then there is nothing wrong benefiting from this subsidy unless it entails Islamic violations, such as Riba (interest and/or usury).

You did not mention in the question whether the government asks that the subsidy be paid back or that it imposes an interest (additional amount) on it. Therefore, if this subsidy is free from this and the investment field is lawful, then there is nothing wrong with that.

For more benefit on taking government support for starting a business, please refer to Fataawa 344338 and 396886.

Allah Knows best.

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