The FBR has started sending notices to teachers and researchers to pay 100 percent income tax, on the other hand, the government has also sought permission from the IMF to provide a 25 percent exemption in income tax for teachers and researchers.
It should be noted that the FBR has failed to achieve the tax target during July to January and during the first seven months of the current fiscal year, the FBR is facing a tax deficit of Rs 470 billion, while the tax deficit in January was Rs 86 billion, as a result of which the FBR has missed collecting tax from teachers and researchers.
After a long silence of 2 years, the FBR has started sending income tax notices to teachers and researchers, in which 100 percent income tax has been charged, while the notices sent by the FBR demand payment of income tax from July 2022.
It should be noted that the government had given 25 percent income tax exemption to teachers and researchers, but the FBR says that this exemption has been withdrawn from July 2022. According to officials, the FBR came to know about the withdrawal of this exemption belatedly in 2024.
On January 14, the FBR sent a threatening notice to the Principal Officer of NUST, stating that regarding the 25 percent tax exemption, you are informed that the government has withdrawn this exemption under the Finance Act 2022, which has been implemented from July 2022.
Therefore, NUST will have to collect and submit the full tax from its teachers and researchers, in case of non-compliance, action will be initiated under Section 161 of the Income Tax Ordinance.
Finance Minister Muhammad Aurangzeb had directed the FBR to raise the issue of tax exemption with the IMF, after which the FBR contacted the IMF, on which the IMF agreed to restore the tax exemption.
The sources further said that it is hoped that the Finance Minister may announce the restoration of the exemption on the occasion of the approval of the Tax Laws Amendment Bill by the National Assembly. Meanwhile, the Federation of All Pakistan Universities Academic Staff Association (FAPUASA) has also condemned the FBR’s decision to end the 25 percent tax exemption for researchers and teachers.
