Tax rebate for teachers elusive despite cabinet’s nod

Islamabad:Though the cabinet gave the green light to a bill on restoration of the 25 per cent tax rebate for full-time teachers and researchers around four months ago, the federal government has dragged its feet, leaving educators in the lurch as every pay-check takes a bigger bite out of their modest incomes.

The tax rebate, a long-standing fiscal relief for teachers, was abruptly withdrawn in January this year effective from July 2022. The Accountant General Pakistan Revenues, acting on directives from the Federal Board of Revenue, began recovering the rebate retrospectively from July 2022.

The move led to steep deductions from teachers’ salary, sparking a wave of protests nationwide, especially in Islamabad's public schools and colleges, amid demands for the immediate rebate restoration.

On Feb 4, 2025, hundreds of teachers from Islamabad held a protest outside the National Press Club under the leadership of Joint Action Committee chairman Fazal-e-Muala. The Federal Government College Teachers Association, a stakeholder in the movement, played a pivotal role in the demonstration along with other associations.

Following high-level negotiations with leaders of the All Government Employees Grand Alliance, the federal cabinet agreed to restore the rebate and passed a bill in this regard.

However, even four months later, the government has yet to issue the formal notification needed to halt further deductions from salary. With payroll processing for the month of May under way, teachers fear another round of unjust deductions just ahead of the imminent Eidul Azha.

“If authorities delay the issuance of the notification and AGPR runs the payrolls of teachers, the deduction will continue,” warned FGCTA President Akram Khan Khosa. “This delay will severely impact the ability of teachers to celebrate Eidul Azha with religious fervour.”

Khosa urged the finance minister to take immediate notice and personally intervene to ensure the release of the notification. “The delay in rebate restoration is deepening the sense of disillusionment among teachers,” he said.

FGCTA Vice President Bushra Kauser noted that another month of deductions would be a serious blow to morale of educators. “The government's inaction contradicts its commitment to supporting education and teachers,” she said. FGCTA press secretary Sobia Masood criticised the bureaucratic bottlenecks hindering the process