SAHIWAL: Teachers and researchers of college and university cadres across Punjab have decided to launch a drive against the abrupt withdrawal of 25 per cent income tax rebate. The Federal Board of Revenue (FBR), in coordination with the Accountant General of Punjab, executed the deduction from May salaries.
Punjab Professors and Lecturers Association (PPLA) President Faiza Rana and Punjab All Government Employees Grand Alliance (AGEGA) General Secretary has demanded immediate withdrawal of the move. This deduction reverses a prior decision by the Federal Tax Ombudsman Secretariate (FTO), Islamabad, who had directed the federal government to restore teachers’ tax rebate. The FTO had clarified that the rebate had been admissible since the promulgation of the Income Tax Ordinance 2001. However, in November 2024, the FBR announced that the rebate had been omitted under the Finance Act 2022 and was no longer applicable for the tax year 2023-24 and beyond. AGEGA subsequently launched protests, leading to a full restoration of the rebate by the Punjab Accountant General from first quarter of May 2024.
In March 2025, following negotiations between AGEGA leaders and federal government committee headed by Minister Rana Sanaullah, the federal cabinet formally reinstated the 25pc rebate through a notification.
Now, the FBR had once again withdrawn the rebate and teachers were facing substantial salary deductions despite prior agreements and the decision of the FTO. Reports indicate that following the instructions, District Account Offices (DAOs) collectively deducted rebates from teachers’ May salaries with reductions ranging from Rs30,000 to Rs75,000 per teacher.
Interestingly, correspondence from the FTO Secretariat had previously emphasized the rebate’s historical applicability and legal standing. Yet, a recent letter from the Punjab Accountant General on May 6 once again said that the rebate clause had been omitted in the Finance Act 2022.
Ms Faiza questioned why the FBR acted so hastily without consulting stakeholders as the same letter had instructed all DAOs in Punjab to refrain from initiating recoveries.
Punjab AGEGA leaders, including Rana Laiquat and Kashif Shahzad, have also questioned the rationale behind the deduction, arguing that the matter had been resolved in 2024.
According to sources, Punjab AGEGA, in collaboration with PPLA, Punjab Teachers Union, Punjab Computer Teacher Association, Punjab SES Teacher Association and Punjab Physical Teacher Association, is preparing to announce a protest schedule.
Ms Faiza told Dawn that potential protests may include boycotting intermediate board paper checking, sit-ins outside District Accounts offices and FBR Regional tax offices, boycott of upcoming intermediate arts and science practical exams.
Federation of all Pakistan University Academic Staff Association President Dr Amjad Magsi said that they would support any protest call given by teachers’ unions who were part of AGEGA.
Published in Dawn, May 29th, 2025
