The National Board of Revenue (NBR) will withdraw VAT imposed on tuition fees of private universities.
NBR Chairman Md Nojibur Rahman told this to the Dhaka Tribune.
The decision came following PM’s directive to withdraw VAT on education.
Read More: PM asks to withdraw education VAT
In a cabinet meeting on Monday, Prime Minister Sheikh Hasina has directed Finance Minister AMA Muhith to withdraw the 7.5% VAT imposed on tuition fees.
An official of the Cabinet Division, requesting anonymity, told the Dhaka Tribune: "At the regular cabinet meeting, the prime minister has asked the finance minister to withdraw VAT on the private universities."
Also Read: Biggest VAT demo so far
The government had slapped 7.5% VAT on private universities, and medical and engineering colleges for fiscal year 2015-16.
Protests against the controversial 7.5% VAT had been going on ever since it was first proposed under the budget for the ongoing fiscal year.