ISLAMABAD - Minister of State for Federal Education Muhammad Baligh Ur Rehman, while welcoming the decision of introducing the deductable allowance for education expenses by the Ministry of Finance, said yesterday that it would bring relief to the parents. The minister also wrote a letter of appreciation to the Finance Minister Ishaq Dar for insertion of section 64-AB in the finance act.

As per the statement issued here, the act states every individual, whose annual taxable income is less than one million rupees, would be entitled to this allowance in respect of tuition fee paid by the person. The finance act further states that the amount of an individual’s deductable allowance for a tax year shall not be less than five percent of the tuition fee paid by the individual.

In other sections the act states that any allowance or part of the allowance under 64-AB for a tax year that is not able to be deducted for the year shall not be carried forward to a subsequent tax year.

Allowance under this section would be allowed against the tax liability of either the parents making payment of the fee on furnishing national tax number or the name of institution. The minister said that the decision would also promote the cause of education in Pakistan.

He also proposed that necessary action may be taken to exempt donations and financial contributions to the public sector educational institutes from tax as well.

He also stated that this decision would not only encourage the financing of education in public sector but would also facilitate the respective governments in achieving their goals of bringing improvements in the field of education.