Refunds of Deducted Salaries Of Teachers To Be Expedited - Bloom Pakistan

Teachers To Get Relief: Refunds of Deducted Salaries To Be Expedited

ISLAMABAD, 29 May 2025: Teachers whose salaries were significantly deducted might see some relief, in the form of expedited refunds.

In February, the government has removed the 25% rebate/exemption of income tax on teachers’ salaries. The Federal Board of Revenue (FBR) executed the deduction from May salaries, which led to mass protests, ultimately leading the Federal Cabinet to reinstating the income tax rebate for teachers across Pakistan.

Today in the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, the FBR has been tasked to compile a report identifying the affected teachers and the status of their refunds. The committee chair said that failure to return the deducted amounts in a timely manner undermines the law’s intent. FBR Chairman assured compliance and supported the committee’s recommendations.

The Senate Standing Committee also approved the Income Tax (Second Amendment) Bill 2025. The committee also reviewed budgetary allocations and utilization under the Public Sector Development Programme (PSDP) for FY 2024 25.

While the Planning Commission raised concerns over lapsed project budgets, Finance Ministry officials clarified no funds had lapsed and over 50 percent of authorized funds had already been disbursed. Senator Mandviwalla requested written figures and recommended summoning the Finance Ministry and relevant departments to ensure transparency.

In discussions on the proposed barter trade mechanism between Pakistan and Iran, Senator Mandviwalla inquired about the absence of a formal net-off settlement mechanism and urged concerned departments to develop a clear procedure. The committee emphasized relaxing existing restrictions and expanding the list of tradable items.

Senator Mandviwalla asked stakeholders to submit proposals for new items and directed authorities to resolve operational issues such as limited customs hours and storage space at NLC terminals in Quetta. He also recommended forming a local committee in Quetta to address traders’ concerns on the ground.

Among those present were Senators Mohsin Aziz, Abdul Qadir, Manzoor Kakar, Chairman Federal Board of Revenue FBR, and senior officials from the Ministry of Finance, Ministry of Law, and FBR.