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Muhith: VAT on private unis won't be withdrawn

Update : 14 Aug 2015, 09:07 AM

Finance Minister AMA Muhith has said the proposed value-added tax (VAT) on private universities will not be withdrawn.

The minister came up with the statement after distributing foods among residents of a government orphanage for children in Bagbari area of Sylhet on Friday afternoon.

Muhith said: "Those who can pay thousands of taka for university fees, it is not tough for them to pay only 7% VAT."

Also Read: HC issues ruling on tuition fees of private universities

He also said he does not support the movement for the withdrawal of VAT on private tertiary education.

"Apart from some recent murder incidents, overall law and order situation of the country is better," Muhith said.

The government will appoint more 35,000 police personnel to maintain law and order situation, he added.

Read More: PM proposes reduction of VAT on private universities

On August 9, the High Court questioned the legality of imposing 7.5% VAT on tuition fees at private universities.

On July 4, the NBR issued a notification imposing 7.5% VAT on tuition fees of students of private universities and medical and engineering colleges.

It was originally proposed in the FY2015-16 budget placed in parliament by Finance Minister AMA Muhith.

Take a look: Private university students meet president for VAT withdrawal

Since then students of private universities have been staging protest against the extra VAT on their education fees.

In June 2010, the NBR proposed to impose 4.5% VAT on the private university tuition fees.

However, in the face of street protest from students directly affected by the decision the revenue authority decided to stall the decision at that time. 

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