Leaders of private universities’ association yesterday called upon the government to review the decision of imposing 7.5% VAT on private education, saying it will hamper the expansion of private tertiary education.
The government, in one hand, has been working on the expansion of education to ensure that it reached everyone, but on the other hand, it was imposing VAT on private universities, they said adding that it was not expected.
“Ultimately the VAT has to be paid by the students which will be a burden for their parents,” said Sheikh Kabir Hossain, president of Association of Private Universities’ of Bangladesh.
He also said the imposition of the VAT will impede higher education of the country.
Kabir made the observation to Dhaka Tribune after a meeting with the association’s executive committee members. Around 35 chairman of board of trustees of different private universities attended the meeting.
The association leaders will meet with the Finance Minister AMA Muhith and Education Minister Nurul Islam Nahid within a day or two, seeking withdrawal of the VAT, said Kabir.
The government in fiscal year 2015-16 imposed 7.5% VAT on private universities, medical and engineering colleges, that came into effect from June 4.
The National Board of Revenue has already asked these institutions to immediately register as a VAT-paying entity and submit their monthly VAT returns to the relevant circle offices in their areas by August 15.
This is the first time the government imposed a 7.5% VAT on the fees of private universities, medical and engineering colleges. In 2010, the government made a move to impose indirect tax on private tertiary education, but had to pull out in the face of student protests.
