Punjab brings tutors, informal schools into tax net

The Punjab government has "quietly" amended the Punjab Private Educational Institutions Act, bringing home-based tuition centres, coaching centres and academies operating in residential areas within the definition of private educational institutions. The amendment, which will be known as the Punjab Private Educational Institutions Act 2026, formally recognises tuition centres run by women and girls from their homes, along with small coaching centres and academies operating in streets and neighbourhoods, as private educational institutions. Under the amendment, these tuition centres, academies and coaching centres will also come under the tax net. Their buildings and properties will consequently fall within the property tax regime, while their electricity and water connections will be treated as commercial. The amendment also brings small private schools operating in residential areas within the tax net, whether they are registered or unregistered. The move has drawn strong criticism from All Pakistan Private Schools Colleges Association President Irfan Muzaffar Kayani, who condemned the amendment and called for its immediate withdrawal. "Instead of providing facilities, the government is imposing tax after tax," he said. Kayani said the measure would particularly affect poor and educated girls who teach four or five neighbourhood children at home to earn a few thousand rupees and contribute towards their families' household expenses. He warned that such women and girls would now face an additional and disproportionate tax burden. He urged the Punjab government to immediately withdraw the amendment, arguing that imposing commercial taxes and property-related charges on small-scale home tuition centres would further burden low-income families.