ISLAMABAD: The Federal Board of Revenue (FBR) has provided significant tax exemptions amounting to Rs2.42 billion on the income of teachers and researchers during the tax year 2019–2020.
According to FBR officials, this exemption was part of a broader initiative to reduce tax rates for individuals engaged in education and research, aiming to promote academic growth and encourage professional development in these fields.
In addition to the exemption granted to educators, the FBR also extended tax relief totaling Rs133 million to individuals receiving flying allowances. This exemption specifically benefits flight engineers, navigators of the Pakistan Armed Forces, personnel of Pakistani Airlines, and officers of the Civil Aviation Authority. Junior Commissioned Officers and other ranks of the Armed Forces, as well as officers of the Pakistan Navy receiving submarine allowances, also fall under this tax relief initiative.
According to the FBR, these categories of professionals are eligible to have their flying or submarine allowances taxed at a reduced rate of 2.5 percent. This rate is treated as a separate block of income, allowing a focused and advantageous tax treatment through the exemption framework.
Furthermore, the FBR granted an additional Rs430 million in tax exemptions to pilots employed by Pakistani airlines. Under the current policy, pilots’ total flying allowances are taxed at a concessional rate of 7.5 percent. However, this exemption applies only to the portion of the allowance that exceeds the basic pay, ensuring that only the excess is taxed at the reduced rate.
Overall, the FBR’s targeted exemptions reflect its policy of offering relief to specific professional categories, supporting both national service members and academic professionals. Through these strategic exemptions, the FBR continues to incentivize essential services while easing the tax burden on deserving segments of society. The exemptions reinforce the commitment of the FBR to create a more equitable and growth-oriented tax regime.