In the federal budget for 2025-26, the government has proposed significant tax relief for full-time teachers and researchers working in non-profit educational or research institutions across Pakistan.
According to the new measure, the income tax payable by such individuals will be reduced by 25% on their salary income. The relief applies to those employed in institutions recognized by the Higher Education Commission (HEC), boards of education, or universities affiliated with the HEC, including government research organizations.
However, the relief comes with a key exclusion. The provision will not apply to teachers in the medical field who earn income through private medical practice or who receive a share of payments made by patients.
This condition appears designed to limit the benefit to those fully engaged in academic or research roles within institutional settings.
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