ByThe Federal Tax Ombudsman (FTO) has instructed the Federal Board of Revenue (FBR) to issue a comprehensive income tax explanatory circular for the benefit of all stakeholders seeking tax rebates for full-time teachers. This directive aims to clarify the availability of tax rebates and ensure transparency.
The FTO emphasized that the FBR must make an explicit declaration in the law, confirming that the tax rebate was legally accessible until the tax year 2024. This measure follows complaints from affected individuals who were denied the rebate despite being eligible under sub-clause (2) of clause (1) of Part-III of the Second Schedule of the Income Tax Ordinance, 2001.
The complainant, a high school teacher in Khairpur employed by the education department of the Government of Sindh, reported that the 25 percent tax rebate for full-time teachers was not reflected in current pay slips. This issue highlighted gaps in the implementation of tax policies for educators.
In its order communicated to the FBR, the FTO directed the board to update the withholding regime under Section 149 by amending the PIFFRA module nationwide. Additionally, the FBR was instructed to ensure that the complainant receives the rebate for the tax years up to 2024, in line with similar decisions by the President of Pakistan.
To prevent further discrepancies, the FTO urged the FBR to provide an authentic version of all administered laws, along with their complete legislative history. This step aims to ensure that accurate information on the legal framework for any period remains accessible to all concerned parties.
