President upholds FTO’s tax relief for Punjab arts students

ISLAMABAD: President Asif Ali Zardari has upheld the Federal Tax Ombudsman’s (FTO) decision to grant tax relief to thousands of students affiliated with the Punjab Council of Arts and Culture, addressing longstanding complaints about excessive tax deductions from payments made to artists participating in cultural events.

In his order, the president emphasised the legal validity of the FTO’s decision, stating:

“The withholding tax is to be deducted under Section 153(1)(b) and not under Section 156 of the Ordinance of 2001. In this view of the matter, the order of the Federal Tax Ombudsman is upheld. The representation is dismissed.”

The issue arose after hundreds of complaints were filed with the Federal Tax Ombudsman, primarily by students of arts and music from various academies.

The complaints centred on the withholding tax deductions from the payments they received for participating in events organised by the Punjab Council of Arts and Culture, Lahore.