Prime Minister Sheikh Hasina has directed Finance Minister AMA Muhith to withdraw the 7.5% VAT imposed on tuition fees of the private universities.
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."
Private television channels are also running scrolls citing that the PM has directed to withdraw education VAT.
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Hearing the news, protesting students in different points of the city were seen holding joyous rallies.
'Decision has been taken'
In a press briefing around 2:15pm, Cabinet Secretary M Musharraf Hossain Bhuiyan confirmed about prime minister's direction regarding withdrawal of VAT on education fees of private universities.
The secretary said: "The prime minister has discussed (the VAT issue) with the finance minister. A decision has been taken.”
"Finance Division or National Board of Revenue will inform you (about the decision),” he added.
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In reply to questions from reporters the secretary said: “Let's see what happens. You will get the details very soon."
However, when asked about VAT withdrawal, Muhith said VAT issue was not discussed at the cabinet meeting.
Earlier in the morning, Bangladesh Chhatra League, student wing of ruling Awami League, called upon the prime minister to withdraw the VAT imposed on private universities.
BCL president Saifur Rahman Sohag made the call in a press conference held at Modhur Canteen in Dhaka University.
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.
