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.