Islamabad, Pakistan – June 22, 2024 – Pakistan’s education and healthcare sectors are locked in a battle to preserve vital tax breaks proposed for elimination in the recently unveiled Finance Bill 2024.
The Association of Private Sector Universities of Pakistan (APSUP) and the Association of Private Medical Institutions of Pakistan (PAMI) have issued a joint appeal urging the government to reconsider these changes.
Tax Rebates for Teachers and Researchers
The proposed changes most concerning to APSUP and PAMI include the removal of tax rebates for full-time teachers and researchers. Previously outlined in the Income Tax Ordinance, 2001, this rebate helped ease the financial burdens on educators. The associations argue that eliminating this benefit will exacerbate existing challenges faced by educational institutions, making it even harder to attract and retain qualified faculty.
“Without these tax breaks,” warns Prof. Dr. Ch. Abdul Rehman, Chairman of APSUP, “we risk a further decline in the quality of higher education.” He, along with Prof. Dr. Riaz Shahbaz Janjua, General Secretary of PAMI, emphasize the critical role these rebates play in supporting Pakistan’s education system, already struggling with a high number of out-of-school children and inadequate learning environments.
Sales Tax Exemptions for Hospitals and NPOs
The associations also express concern about the proposed withdrawal of sales tax exemptions for hospitals and non-profit organizations (NPOs). Changes outlined in the Finance Bill threaten to impose an 18% sales tax on essential medical supplies and equipment imported by these institutions. This additional financial burden could cripple healthcare providers, particularly those serving underprivileged communities who rely on subsidized or free medical services.
Mian Imran Masood, Spokesperson for APSUP, and Dr. Rizwan Sagheer Chatha, Spokesperson for PAMI, jointly urge the government to “suspend the proposed changes” and reinstate the sales tax exemptions. They highlight the critical role these exemptions play in ensuring the continued viability of these institutions and their ability to deliver essential services.
Appeal for Continued Support
Both APSUP and PAMI express confidence in the government’s commitment to education and healthcare. Their appeal urges the administration to reconsider these budgetary measures and prioritize the development of these vital sectors. The coming days will be crucial as these associations and the government work towards a solution that ensures adequate funding and support for Pakistan’s education and healthcare systems.