The Federal Board of Revenue (FBR) has begun issuing tax notices to teachers and researchers, requiring them to pay the full income tax amount. Simultaneously, the government has reached out to the International Monetary Fund (IMF) to seek approval for restoring a 25% tax exemption for this group.
After a two-year hiatus, FBR has resumed sending notices, demanding 100% tax payments, including backdated amounts from July 2022. This change stems from the Finance Act 2022, which revoked the 25% exemption. However, FBR only became aware of the amendment in 2024.
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On January 14, NUST received a notice from FBR, instructing the university to collect full taxes from its faculty. Non-compliance could lead to legal action under Section 161 of the Income Tax Ordinance.
Finance Minister Muhammad Aurangzeb has reportedly raised the matter with the IMF, which agreed to restore the exemption. The minister plans to announce this during the presentation of the Tax Laws Amendment Bill in the National Assembly.
Meanwhile, the Federation of All Pakistan Universities Academic Staff Association (FAPUASA) has condemned FBR’s move, arguing that it unjustly burdens teachers and researchers.
