The Federal Board of Revenue (FBR), Punjab Revenue Authority (PRA) and Sindh Revenue Board (SRB) have issued notices to National Testing Service-Pakistan (NTS), demanding deduction of sales tax, on behalf of the federal and provincial governments, from all candidates appearing in its tests. According to a brief submitted by NTS to the National Assembly Standing Committee on Finance, NTS has apprehended that the FBR''s and provincial government''s move would result in an increase in the fee payable by the applicants by around 16 percent.
In this connection, with regard to possibility of reduction in fee, the management of NTS has already taken steps to reduce the average test fees by around 15 percent during the previous year, while the competitive process undertaken by the government departments for selection of testing agencies through bidding/EOI further ensures that prices being charged are driven down overall.
Moreover, the NTS has taken up its case for tax exemption, being a not-for-profit company, and proceedings are ongoing before various judicial and tax authority forums. The management is hopeful about the outcome of these proceedings and once said exemption is granted, NTS would be in a position to consider a further reduction in test fees.
According to the details, National Testing Service-Pakistan (NTS) is a not-for-profit company not having share capital registered with the Securities and Exchange Commission of Pakistan (SECP) under section 42 of the Companies Ordinance, 1984. Its promoter organisation is the COMSATS Institute of Information Technology (CIIT). Further, NTS is operated and governed by its members and directors who are ex-officio nominees of CIIT, which is a public sector degree awarding institute. NTS being a self-sustainable organization generates all funds to meet its financial needs from its own resources of fees from various type of test and does not receive any type of grants/funds from the national exchequer.
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