The Federal Board of Revenue (FBR) has started sending tax notices to teachers and researchers, demanding full income tax payments. At the same time, the government has approached the International Monetary Fund (IMF) to seek approval for a 25% tax exemption for them.
After nearly two years of inaction, FBR has resumed issuing tax notices, requiring 100% income tax payments. These notices also demand backdated payments from July 2022.
Previously, the government had granted a 25% tax exemption to teachers and researchers. However, FBR states that this exemption was revoked under the Finance Act 2022, effective July 2022, though officials only became aware of it in 2024.
On January 14, FBR sent a warning notice to NUST, instructing the university to collect full taxes from its faculty. It stated that failure to comply would result in action under Section 161 of the Income Tax Ordinance.
Meanwhile, according to Express Tribune, citing sources, Finance Minister Muhammad Aurangzeb directed FBR to raise the issue with IMF, which has reportedly agreed to restore the exemption. The minister is expected to make an announcement when the Tax Laws Amendment Bill is presented in the National Assembly.
The Federation of All Pakistan Universities Academic Staff Association (FAPUASA) has strongly criticized FBR’s decision to remove the 25% tax exemption for teachers and researchers.
