The Punjab government has expanded the tax net to include home tuition centres, coaching academies and small private schools operating in residential areas.
The change comes through an amendment to the Punjab Private Educational Institutions law. Home tuition centres and academies will now be treated as private educational institutions.
People who teach a small number of students from their homes could come under the new rules. The measure also covers home tuition centres operated by women.
Property tax and commercial utility charges
Buildings and properties being used for these educational activities will come under the new property tax system.
Electricity and water connections used by these institutions will also be treated as commercial connections rather than residential ones. This could increase operating expenses for people running tuition centres from their homes.
Small private schools operating in residential areas have also been included. The tax rules will apply whether these schools are registered or unregistered.
Previously, in July, authorities launched action against unregistered academies and required institutions to obtain registration and building fitness certificates.
Private schools association opposes decision
The amendment has faced opposition from the All Pakistan Private Schools Colleges Association.
Association President Irfan Muzaffar Kayani criticised the decision and demanded that the Punjab government withdraw the amendment.
He said the policy could affect educated women and girls who teach a few children from their neighbourhoods at home to support their families.
According to Kayani, some women teach only four or five students and earn a small amount each month. Treating such activities as commercial operations could place an additional financial burden on them.
The association also argued that additional property taxes and commercial utility charges could increase the cost of running small tuition centres. These expenses could eventually affect families that depend on affordable neighbourhood tuition.