Govt decision to revoke tax rebate for teachers condemned

LAHORE:Punjab University Academic Staff Association (PUASA) and the Federation of All Pakistan Universities Academic Staff Association (FAPUASA) Punjab Chapter held a joint press conference here on Monday to condemn the federal government’s decision to revoke the longstanding tax rebate for researchers and teachers.

PUASA President and former FAPUASA president Prof Dr Amjad Abbas Khan Magsi, FAPUASA Balochistan president Prof Dr Kaleem Ullah Bareach, FAPUASA Punjab president and PUASA secretary Dr M Islam, and others were also present.

Speaking at the press conference at PU New Campus, the FAPUASA and PUASA leaders demanded Chief Minister Maryam Nawaz to increase budgetary allocations for the varsities of the province. They expressed serious concern over the meager funding and tax issues of the universities of Punjab province.

Dr Amjad Magsi said, “Despite being the largest province and more number of universities (51) in Punjab, only Rs18 billion have been fixed as recurring grant while Sindh province that has less (32) varsities than Punjab, more than double grant Rs42 billion has been allocated there. They demanded the Punjab Chief Minister for an immediate revision of allocation of recurring grants for the public sector universities in Punjab province.

This tax rebate was originally introduced by the Musharaf Government in 2006 at 75%, aimed at promoting research and academic retention. It was reduced to 40% by the PMLN government in 2013, and now the PMLN government is abolishing it completely, a continuation of policies that show longstanding disregard for the academic community. The rebate was never a luxury; it was a lifeline for university faculty and researchers who routinely pay out of pocket for journal publication fees, chemicals, fieldwork, and academic travel. Its abolition will demoralise scholars, reduce research productivity, and accelerate brain drain, weakening Pakistan’s academic future. This assault comes amid a broader financial crisis in higher education. Despite the federal budget growing from Rs5.9 trillion in 2018 to Rs17.5 trillion in 2025, a 196% increase, the recurring grant for higher education has remained frozen at just Rs65 billion.

Meanwhile, the number of public sector universities has grown from 126 to 160, and operating costs, salaries, pensions, utilities, have skyrocketed. According to the Economic Survey of Pakistan, the country is spending only 0.8% of its GDP on education overall, and a mere 0.37% on higher education in the current fiscal year.

This is well below the UNESCO-recommended 4–6%, and far behind regional peers like India and Bangladesh. Shockingly, both PMLN and PPP had committed in their election manifestos to increase education spending to 4% of GDP, but have failed to honour those promises while in power. The PUASA and FAPUASA leadership warned of a country wide protest in case the government didn't honor their demands.