Wa `alaykum As-Salamu wa Rahmatullahi wa Barakatuh.
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
Dear questioner, we would like to thank you for the great confidence you place in us, and we implore Allah Almighty to help us serve His cause and render our work for His Sake.
Muslims, especially those living in majority non-Muslim countries have to represent the true image of Islam. They should not evade paying taxes under the pretext that the countries where they live back Israel.
Responding to your question, Sheikh Faysal Mawlawi, deputy chairman of the European Council for Fatwa and Research, issues the following Fatwa:
I think that there is no relation between the two matters. We can all see some Muslim countries supporting the US in its so-called “Anti-Terrorism Campaign” and even support the US to fight Islam under the pretext of fighting terrorism. Every Muslim finds himself on the horns of a dilemma, for he has to support his Muslim brothers and there is a rope tied around his neck. However, Allah does not place something on people beyond their capability. A Muslim cannot escape paying the taxes whether in a Muslim or a non-Muslim country regardless of how the taxes paid are used and despite the fact that the taxes may be used in fighting Islam and Muslims.
There are many other things a Muslim can do in this case, such as boycotting the Israeli and American products, especially those that benefit the economy of the countries fighting Islam. Here, we should strike an equitable balance between the harms and the benefits and spare no pains in this concern. We should always remember the verse that reads: (…He (Allah) hath not laid upon you in religion any hardship…) (Al-Hajj 18: 78)
You can also read:
Tax Evasion in Non-Muslim Countries: Permissible?
Boycotting Israeli and American Goods
Two Levels of Backing Oppressed Muslims
Backing Fellow Muslims