The federal government has stated that, full-time teachers and researchers will once again be eligible for a 25 percent tax refund against their tax obligations.

This is a significant step that will provide much-needed relief to the academic community.

The tax rate in the new federal budget for 2025–2026 will be 1 percent for taxable incomes between Rs. 600,000 and Rs. 1,200,000, but not exceeding that amount.

The tax-free status of those earning up to Rs. 600,000 has not changed. This exemption makes sure that people with lesser incomes don't have to pay more in taxes.

The tax rate has been reduced to 11% of the amount over Rs. 1,200,000 for those with incomes between Rs. 1,200,000 and Rs. 2,200,000.

Tax attorney Waheed Shahzad Butt praised the government's decision and gave the Office of the Federal Tax Ombudsman (FTO) a lot of credit for their persistent work.

Mr. Shahzad further said, "This is a huge accomplishment for full-time educators and researchers, especially those in the salaried class who frequently find themselves without significant influence." Khalid Javed, the Registrar of the FTO, deserves all the credit for this admirable action for his tireless and hard-working efforts on this important matter.

For educators and researchers who had to deal with the tax refund being discontinued, which resulted in major financial strain and widespread concerns within the academic community, its restoration represents a significant reprieve.

This improvement is widely acknowledged to have been made possible by the FTO's persistent agitation and attention to the situation of these unimportant taxpayers.

Butt emphasized that this move, in addition to offering real financial assistance, shows the government's dedication to assisting the research and education sectors, which are essential to the growth of the country.

The rebate's impact is further cemented by its retroactive application, which resolves previous complaints and guarantees this committed labor group more equitable tax treatment.

It is anticipated that the action will be widely appreciated by educators, scholars, and educational establishments nationwide, creating a more favorable atmosphere for scholarly endeavors and intellectual development.

"The 25% refund against tax payable by full-time teachers and researchers will be restored retroactively, i.e., from TY 2023 to TY 2025," according to the federal government budget statement.