KP Principals Score Big: Full Tax Rebate Secured After FTO Ruling

In a landmark decision, the Federal Tax Ombudsman (FTO) has ordered the Federal Board of Revenue (FBR) to grant maximum income tax rebate to Principals, Vice-Principals, and Head Masters in Khyber Pakhtunkhwa (KP), putting them on par with full-time teachers and researchers. This ruling brings much-needed relief to educators throughout the province.

Previously, educators promoted to headmaster or principal positions in KP faced an unfair reduction in their tax rebate. This discrepancy, despite their continued categorization as part of the teaching cadre by the provincial government, caused financial hardship and demotivation.

Responding to a complaint filed under the FTO Ordinance, the Ombudsman recognized the injustice and issued a clear directive to the FBR. They instructed the Chief Commissioner RTO Peshawar to ensure that KP educators in leadership roles receive the same tax rebate benefits as their colleagues in full-time teaching positions. This includes the full rebate under clause (2) Part-Ill of the Second Schedule to the Income Tax Ordinance, 2001.

This decision is a major victory for educational equity and recognition in KP. It acknowledges the vital role principals and headmasters play in leading and managing schools, ensuring quality education for the province’s children. Having access to the full tax rebate will not only improve their financial well-being but also boost their morale and dedication to their crucial roles.

Key takeaways:

  • KP principals, vice-principals, and headmasters are now eligible for the same tax rebate as full-time teachers and researchers.
  • This decision corrects a previous discrepancy that disadvantaged educators promoted to leadership positions.
  • The ruling recognizes the valuable contribution of educational leaders in KP.
  • This is a victory for educational equity and will likely improve the morale and well-being of educators.

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