High Court: VAT on English medium tuition fees illegal

The High Court has declared the 7.5% VAT on tuition fees at English medium schools illegal. The court yesterday said the imposition of VAT was discriminatory and contradictory to the constitution, and thus it cannot be extracted from students from January 2017. The High Court bench of Justice Zubayer Rahman Chowdhury and Justice Mozibur Rahman Miah gave the verdict on a writ petition that challenged the government decision to impose VAT on tuition fees at English medium schools. On September 17, 2015, the High Court stayed the collection of VAT on tuition fees for six months after two guardians filed the writ petition. At that time the court also issued a ruling, asking the authorities concerned to explain why the VAT imposition should not be declared illegal. The National Board of Revenue chairman, secretaries to the Education Ministry and the Internal Resources Division of the Finance Ministry were made respondents to the ruling. Yesterday, the court declared the VAT imposition illegal after concluding the final hearing on the issue. The writ petition argued that it was the government’s duty to ensure education and equal opportunity for all according to the constitution. Hence, imposing VAT on tuition and other fees violate it. The government imposed a 4.5% VAT on fees and services in English medium schools in 2010. In 2014, it was raised to 7.5%. There is no VAT for Bangla medium schools. The demand for withdrawal of the VAT on English medium schools grew strong after the government decided to remove VAT on tuition fees at private universities, medical colleges and engineering colleges.