Withdrawal of tax exemption: Teachers, researchers berate decision

FBR withdrew five major income tax exemptions to generate additional revenue.

Our Correspondent June 17, 2013
FBR withdrew five major income tax exemptions to generate additional revenue. DESIGN: FAIZAN DAWOOD


Educationists, social scientists and researchers have expressed concerns over the government’s decision to withdraw the 75 per cent tax exemption on salaries they were previously given.

The Federal Board of Revenue, in light of the new Finance Bill 2013-14, withdrew five major income tax exemptions to generate additional revenue. The withdrawals included a 75 percent tax exemption on salaries of professional teachers and researchers at accredited institutes.

The Pakistan Academy of Sciences executive secretary said that the step will seriously hamper scientific output in the country.

NUST Assistant Prof Dr Najma Sadiq said the tax break withdrawal will force teachers to rethink making the profession a full-time career.

HEC Chairperson Javaid Laghari said he spoke with  Minister of State for Education Balighur Rehman and the minister had assured him that the issue will be addressed.

Conversely, Allama Iqbal Open University Prof Dr Noshad Khan said that he favoured the decision. “We cannot run this country without paying taxes and if we do not pay taxes, who else will contribute to the economy,” he said.

Published in The Express Tribune, June 17th, 2013.


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Atta ur Rehman | 7 years ago | Reply

They wont spare anyone...

Waqar Qureshi | 7 years ago | Reply

All those defending and justifying this brutal act with education in Pakistan. It is for you all; 1. There was no GST on lab equipment to be purchased for educational purposes, Government took that away. 2. Public Sector Universities are not industries, they do not make profits. However a tax has been imposed even on the savings of Endowment Funds of universities. How low can you get my dear government? 3. Army got a double rise in pays, what judiciary gets we all know. What Police gets that we also know and about bureaucrats do I need to mention? 4. University teachers got few facilities starting from 2002 on wards and the results are in front of you. 7 Public sector universities are in world top 400 today whereas it was no university in world top 500 prior to 2002. 5. Which other professionals have made it up to top rankings because of their performance despite huge facilities given to them? 6. The total financial impact of bringing universities under new taxation system is not more than o.13%. 7. Education is not a business but an investment in your future. 8. Current policies actually want to negate our poor country from reaping the results of the only good policy of Musharaf in education sector. New tax system encourages brain drain. It discourages public sector education and directly benefits private education mafias and cartels.. 9. Some of the teachers work purely because of motivation and commitment even at low salaries but such teachers who value money more because of their own circumstances are also not less. I have seen many PhDs leaving public sector universities and joining private sector universities as a result of such anti-public sector education policies. 10. Was education the only field left to generate some taxes out of it? I am sorry to say, we as a nation never learn from our mistakes and others' successes.

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