ISLAMABAD – The Federal Board of Revenue (FBR) has started issuing notices to teachers and researchers demanding the payment of 100 percent income tax.
It comes as the government is also trying to convince the International Monetary Fund (IMF) to grant a 25% tax relief to teachers and researchers.
The top tax authority has paced up the efforts to generate more revenue as it has failed to meet its tax target from July to January. During the first seven months of the current fiscal year, it has faced a tax shortfall of Rs470 billion In January alone, the shortfall amounted to Rs86 billion, which has led the FBR to focus on collecting taxes from teachers and researchers.
After a two-year period of silence, the FBR has started sending income tax notices to teachers and researchers, charging 100% income tax. The notices have demand payment of taxes from July 2022 onwards.
The government had previously provided a 25% income tax exemption to this segment, but the FBR states that this exemption was revoked in July 2022. However, the FBR learnt about the development in 2024.
On January 14, the FBR sent a notice to the principal officer of National University of Sciences and Technology (NUST), informing them that the 25% tax relief was withdrawn under the Finance Act 2022, effective from July 2022.
Therefore, NUST is now required to collect and remit the full tax amount from its teachers and researchers. If not complied with, action will be taken under Section 161 of the Income Tax Ordinance.
