ISLAMABAD: The Federal Board of Revenue is to defend its stand on non-provision of income tax exemption to Head Masters and Principals of educational institutions of the Khyber Pakhtunkhwa before Federal Ombudsman.
The Federal Ombudsman, which has the vision to promote high standards of governance, accountability and efficiency through administrative justice services and mission to redress public grievances in a fair, prompt and transparent manner, has sought reply from the FBR on the said issue.
A well- placed source at FBR Tuesday told this scribe that Head Masters and Principals of educational institutions from Khyber Pakhtunkhwa province had lodged complaint against the FBR with Federal Ombudsman over non- provision of facility of exemption from income tax. Whereas FBR has stance that teaching cadre had nothing to do with the applicants and FBR could entertain the applications filed by the teaching staff which falls in the teaching cadre as specified in the Income Tax Law.
According to their stand, they fall in teaching cadre which provides a provision of income tax exemption. They submitted an application in this regard with the Regional Tax Officer (RTO) Peshawar. However, RTO rejected their petition with observation that amendment in the part III of the clause II of the second schedule of Income Tax Ordinance 2001 had been instructed in Finance Act 2013, therefore, application could not be considered. The source further said that at this the applicants had pursued the Federal Ombudsman against the plea of RTO Peshawar. Now FBR would defend this stand at the office of Federal Ombudsman.
