Notification 25% Rebate to Teachers on Income Tax (2025)

Federal Tax Ombudsman Secretariat Islamabad issued a Notification on 21-04-2025 in connection with a 25% Rebate to Teachers on Income Tax. Now the teachers will have to deduct 75% of the total income tax applicable on their gross salary. The details are as follows:

25% Rebate to Teachers on Income Tax

 Sub: Issuance of Notices to Withholding Agents/Salary Disbursing Authorities Regarding Teachers Rebate @ 25%

As per the Notification, the teachers will now have a 15% relaxation in income tax on their gross salaries.

In continuation of FTO Sectt’s letter of even number dated 11.04.2025, on the subject.

It is mentioned that earlier, Representatives of the Federal Government agreed to withdraw, ab initio, the letters issued by the Field Formations of FBR regarding not allowing teachers’ tax rebate vide an agreement executed with the Representatives of the All Government Grand Alliance of Employees dated 10.03.2025. Subsequently, the Federal Cabinet also approved the retention of teachers rebate through the approval of the Income Tax (Second Amendment) Bill, 2025.

Given the above-referred decision of the Federal Government and the Federal Cabinet, FBR should immediately withdraw the letters issued by the Filed Offices to Withholding Agents, thus facilitating the disposal of complaints.

Federal Tax Ombudsman Secretariat

5-A Constitution Avenue, Islamabad

Ph: 051-9214348 Fax: 051-9205553

No. 07/DC/REG/2025

Dated: 21.04.2025

To:

The Member Inland Revenue (Operations)

Federal Board of Revenue