Taxing teachers

As per Clause 2, 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 (the) Higher Education Commission, including (a) government training and research institution, shall be reduced by an amount equal to 75 percent of the tax payable on his income from salary.”
Unfortunately, this exemption was reduced to a mere 40 percent in the budget for FY 2013-14. This perceptibly unpleasant act added more to the dissatisfaction and demoralisation of teachers and researchers in the public sector than substantially contributing to the exchequer. Now that the government is working on proposals for the next budget it is suggested that either the income of teachers and researchers is totally exempted from tax or at least the previous exemption of 75 percent is restored.
Professor Dr Mubbasher Munawar Khan
Lahore