Withdrawal of 75 percent tax rebate: teachers, researchers voice concern at government's decision

The government decision to withdraw 75 percent tax rebate available to full time teachers and researchers has caused concern among those affiliated with different government and semi-government educational institutions. The decision would adversely impact the income of low earning teachers and researchers disabling them from meeting their household expenditure, a teacher deplored while talking to this correspondent.
The government has withdrawn the exemption provided to teachers and researchers in the Second Schedule of the Income Tax Ordinance 2001 arguing that it has been widely misused by high income earners causing huge loss to exchequer. Tax rebate would not be given to any teacher and researcher in the financial year 2013-14 and they are bound to pay full tax according to their pay scale, the Finance Bill said.
As per clause (2) of part-iii of the Second Schedule of the Income Tax Ordinance 2001: "The tax payable by a full time teacher or a researcher, employed in a non-profit education or research institution duly recognised by Higher Education Commission, a Board of Education or a University recognised by the Higher Education Commission, including government training and research institutions, shall be reduced by an amount equal to 75 percent of tax payable on his income from salary."
The teachers and researchers teaching in different government and semi-government schools, colleges and university widely condemned the withdrawal of the tax exemption, terming it a bid to strangulate the education system of the country. Executive Director Higher Education Commission, Professor Dr Mukhtar Ahmed told Business Recorder that the HEC was reviewing the government decision and would urge the government to withdraw its decision of withdrawing 75 percent tax rebate available to full time teachers and researchers.
He said that the exemption was a great incentive from the government to the educationists to convince them to join the profession, adding that the removal of the tax exemption would have an adverse affect. Teachers and researchers working in different government and semi-government universities contacted HEC and expressed concern over the government decision, he added. President, Federal Government College Teachers Association (FGCTA), Tahir Mehmood, said that the government should review the decision.