ISLAMABAD: Teachers of public-sector universities on Sunday criticised the government for its plan to abolish the tax rebate for teachers and researchers in the upcoming fiscal year.

Following a statement by the chairman of the Federal Board of Revenue (FBR) that the International Monetary Fund (IMF) had rejected the FBR’s proposal to allow a 25pc tax rebate for teachers and researchers from July 1, 2025, the university teachers issued a statement demanding that the government not impose cuts on this rebate.

They warned that scrapping the rebate would lead to brain drain and demoralise researchers and scholars in the country.

Earlier, on Saturday, FBR Chairman Rashid Mahmood Langrial informed the National Assembly Standing Committee on Finance that the IMF had rejected the FBR’s proposal to continue the 25pc tax rebate from July 1, the start of the new fiscal year.

He said the FBR had approached the IMF twice, but the fund did not agree. However, he added, the government could still provide a subsidy through the budget, if feasible.

Reacting to the chairman’s disclosure, the Federation of All Pakistan Universities Academic Staff Associations (FAPUASA), an elected body representing teachers at public sector universities, “strongly condemned the government’s plan to abolish the longstanding tax rebate for university teachers and researchers in the upcoming budget.”

In a statement, FAPUASA noted that the rebate, introduced in 2006 at a 75pc rate and reduced to 25pc by the Pakistan Muslim League-Nawaz (PML-N) government in 2013, was the only meaningful incentive for researchers to remain in academia and contribute to national development. “Now, the same party seeks to end it altogether, dealing a serious blow to higher education and research in Pakistan,” the statement read.

It further said the government’s justification — that the IMF objected to the rebate — was both weak and misleading. “If the IMF has no objection to the FBR spending billions on luxury cars for officers, how can it justify denying a modest tax relief for educators and researchers? Even more outrageously, the same budget reportedly includes up to 600pc salary increases for parliamentarians, highlighting the government’s misplaced priorities,” the statement added.

The statement concluded by warning that ending the rebate would accelerate brain drain, demoralise scholars, and further weaken Pakistan’s research output.

FAPUASA said it would announce its response strategy at a press conference on Monday.

Published in Dawn, June 23rd, 2025