THE Federal Board of Revenue (FBR) allows tax rebate for fulltime teachers and researchers by up to 40 per cent subject to some conditions. Tax reduction, for instance, is allowed if the individual is a fulltime teacher or researcher employed by some non-profit education or research institution, a board of education or a university recognised by the Higher Education Commission (HEC). Staff of government training and research institutions are also included.

It has been generally observed that tax reduction is awarded by these institutions without adherence to the conditions by forming internal evaluation committees. This is done to ‘reward’ personal contacts. As such, employees of a number of departments end up getting the facility without having anything to do with either teaching or research. The FBR apparently has no way of evaluating it.

It is suggested that this particular tax reduction should be discontinued in the forthcoming budget. If, for some reason, the facility has to continue, it may be allowed only in universities and only to those furnishing published research.

Dr Javed Iqbal
Islamabad

Published in Dawn, May 24th, 2024