ISLAMABAD: Federal Board of Revenue (FBR) Chairman Mubeen Arif announced that Teachers across Pakistan will be eligible for an income tax rebate starting from the next fiscal year, media reported.
FBR Chairman made the announcement during a meeting of the National Assembly’s Standing Committee on Finance.
Arif noted that the rebate, which had been overlooked previously, was later approved by the federal cabinet and will be incorporated into the Finance Bill for the upcoming fiscal year to provide relief to educators.
A representative from the Ministry of Law clarified that the proposed bill aims to grant income tax relief specifically for teachers.
During the meeting, discussions also touched on the windfall tax, which Arif explained is imposed on entities like banks earning extraordinary profits but has not been applied to other companies.
Addressing a separate concern raised by committee member Mirza Ikhtiar Baig about a Karachi business withdrawing PKR 100 million from a bank without notice, Arif stated he was unaware of the case but could respond after reviewing both sides of the matter.
In a separate development earlier sources revealed that the Salaried class of Pakistan likely to get relief in income tax in the FY2025- 26 budget. As per details, the final phase of budget negotiations between Pakistan and the International Monetary Fund (IMF) is underway. Prime Minister Shehbaz Sharif earlier directed that relief measures be introduced for salaried individuals. According to a briefing given to the prime minister, the government collected more tax than anticipated from the salaried segment during the current fiscal year.
Sources indicated that income tax relief of 2.5% could be provided across all income slabs for salaried employees. Additionally, similar tax rate reductions are being considered for the corporate sector, while the Prime Minister has also instructed a 0.5% reduction in the super tax. –Agencies
