FBR Directed to Clarify and Implement Tax Rebates for Teachers

The Federal Board of Revenue (FBR) has been urged to make a definitive and clear decision by explicitly stating in the law that the tax rebate for full-time teachers was valid until the tax year 2024.

The Federal Tax Ombudsman (FTO) issued these directives to the FBR after receiving complaints regarding the non-implementation of tax rebates granted to full-time teachers under sub-clause (2) of clause (1) of Part-III of the Second Schedule of the Income Tax Ordinance 2001.

The complainant, a high school teacher in the Education Department of the Government of Sindh, Khairpur, claimed entitlement to a 25 percent tax rebate for full-time teachers. However, the benefit was not reflected in his pay slips.

An order from the FTO, received by the FBR on Wednesday, emphasized the need for the FBR to amend the withholding tax regime under Section 149 and update the PIFFRA module nationwide. The FBR was instructed to grant the tax rebate to the complainant up to the tax year 2024, in line with several decisions made by the President of Pakistan in similar cases.

The FTO also recommended that the FBR issue an official version of all the laws it administers, complete with legislative history. This measure aims to ensure the accurate application and interpretation of tax laws for any given period.