Government, Private Schools Discuss Tax and Labour Matters

TIMES REPORT

PESHAWAR: An important meeting on issues concerning private educational institutions was held under the chairmanship of Khyber Pakhtunkhwa Chief Minister’s Adviser on Finance, Muzammil Aslam.

The meeting was attended by selected members of the Khyber Pakhtunkhwa Private Schools Regulatory Authority, including Fazalullah Daudzai, Syed Anas Takreem Kakakhel and Farooq Shah, along with other representatives.

The participants discussed in detail matters relating to excise and taxation, labour laws and social security applicable to private educational institutions.

Regarding excise and taxation, representatives of private schools requested further concessions in the proposed categorisation mechanism and taxes imposed on examination halls. The Finance Adviser said the government had already provided a 30 per cent concession, while no further reduction was possible. He said taxation would be imposed according to the category of institutions, with comparatively higher rates applicable to institutions located in A-1 and A-category areas.

The meeting also discussed the applicability of labour and social security laws to private educational institutions. Representatives of the private education sector referred to relevant provisions of the Khyber Pakhtunkhwa Private Schools Regulatory Authority Act, 2017, and stressed the need for further legal and policy clarification.

Muzammil Aslam said teachers working in private schools should not be paid excessively low salaries.

The delegation pointed out that a large number of students were enrolled in low-fee private schools. It expressed concern that applying minimum wage laws without considering the financial capacity of such institutions could affect their financial sustainability and, consequently, the education of students.

Additional Chief Secretary Khyber Pakhtunkhwa Ikramullah maintained that labour laws applied to all sectors and that exemptions generally could not be granted.

In response, representatives of the private education sector argued that teachers performed professional duties and that the working hours, holidays and nature of work in educational institutions differed from those in industrial establishments. They called for legal and policy clarification regarding the application of labour laws to private schools.

The meeting also considered possible future courses of action. The Finance Adviser acknowledged the need for further examination of the matter and proposed exploring alternative mechanisms, including linking teachers’ remuneration with teaching hours or other measurable factors.

It was agreed that further consultation would continue in the next meeting to examine the legal, policy and financial aspects of the matter in greater detail.

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