FAPUASA assails govt for failing to restore 25pc tax rebate for teachers

LAHORE: The Federation of All Pakistan Universities Academic Staff Associations (FAPUASA Pakistan) on Sunday criticised the federal government for its alleged indifference toward restoring a 25% tax rebate for teachers and researchers, while swiftly granting tax exemptions to the International Cricket Council (ICC) and foreign players participating in the Champions Trophy.

FAPUASA President Dr Amjad Abbas Magsi accused the government of showing “preferential treatment” by waiving income taxes for the ICC and international athletes without parliamentary approval, even as educators nationwide continue protests over the abrupt withdrawal of their tax relief. He highlighted the stark contrast in priorities, noting that teachers’ salaries had been “significantly slashed” mid-fiscal year due to the Federal Board of Revenue’s (FBR) unilateral decision to revoke the rebate in December 2024.

Dr Magsi stated that the tax rebate, initially announced by the Federal Finance Minister in the June 28, 2024 budget speech and enshrined in income tax manuals since 2022, was abruptly overturned by the FBR. Universities were directed not only to deduct full taxes but also recover arrears from the past three years—a move he called a “mockery of parliamentary proceedings.” Despite repeated appeals to the Prime Minister, Finance Minister, and FBR Chairman, he lamented that the government had “turned a blind eye” to the crisis.

The FAPUASA chief also expressed concern over the deteriorating state of higher education, citing chronic under funding, increased bureaucratic interference in university governance, and controversial changes to vice-chancellor appointment criteria. He warned that neglecting public-sector universities — which cater predominantly to middle- and lower-income students — would have dire consequences for Pakistan’s education system and youth.

Calling for urgent intervention, Dr Magsi demanded the immediate restoration of the tax rebate and warned of nationwide protests if the government failed to act. “The academia stands united against these discriminatory policies,” he declared, emphasizing that the federation would soon finalize a strategy for escalating its demonstrations.

The controversy has ignited a widespread backlash among educators, who argue that the government’s contradictory actions—celebrating economic progress while undermining academic professionals—expose a misalignment of national priorities.

Copyright Business Recorder, 2025