The implementation of the Value Added Tax (VAT) and Supplementary Duty (SD) Act 2012, set for July 1, will see English medium schools charged a 15% VAT, though Bangla medium schools continue to enjoy exemption.
This is supplemented by the Money Bill 2017 which clearly states that “all educational systems, excluding English medium schools, are exempted from VAT.”
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The fight for English medium schools to be given equal consideration predates the government’s decision to scrap VAT on tuition fees of private universities, medical colleges, Bangla medium schools and engineering colleges in September 2015.
In 2010, the government imposed a 4.5% VAT on English medium school fees and services. Later, in 2014, this VAT amount was raised to 7.5%. The government’s subsequent decision to exclude English medium schools from VAT exemption in 2015 was greeted with a backlash of strong protests from the Bangladesh English Medium School Association, students and guardians, resulting in two guardians filing a writ petition with the High Court on September 17, 2015, arguing that VAT imposition was a violation of the constitution which stated that it was the government’s duty to ensure education and equal opportunity for all.
Also Read- Verdict on English medium schools fees VAT stayed
Following that, on December 12 last year, the High Court declared the imposition of VAT on English medium schools to be illegal. It said the 7.5% VAT was discriminatory and a violation of the constitution and had directed the authorities concerned to stop collecting VAT from January this year.
However, a guardian of an English medium school student stated that, other than enjoying VAT immunity in November 2015, there had been very little change and parents had gone back to paying VAT from December that year.
Also Read- SC: VAT cannot be extracted from students
Later, on February 13, the Supreme Court passed an order that the government could not collect the 7.5% VAT from the English medium schools, but this has been negated by the steps currently being taken by the government.
When questioned about the proposed 15% VAT to be placed on English medium schools, irrespective of the Supreme Court ban, VAT Online Project Director Rezaul Hasan told the Dhaka Tribune: “This VAT will be imposed on English medium schools. The attorney general will appeal the court’s verdict.”
The principals of several English medium schools, whom the Dhaka Tribune reached out to, declined to comment on the matter citing the Supreme Court order.