SC: VAT cannot be extracted from students

A four-member bench of the Appellate Division headed by Chief Justice Surendra Kumar Sinha passed the order hearing a leave-to-appeal petition filed by  the National Board of Revenue. Earlier, on December 12, the HC declared that imposing VAT on English medium school tuition fees is illegal. It said the 7.5% VAT was discriminatory and a violation of the constitution. Later, the government moved a petition in the SC, seeking a stay on the verdict and the chamber judge of the Appellate Division forwarded it for hearing at a regular bench. The SC bench on January 3 stayed the HC verdict and asked the NBR to file the leave-to-appeal plea. The government had imposed a 4.5% VAT on fees and services of English medium schools in 2010. Later, it was raised to 7.5% in 2014. There is no VAT for Bangla medium schools. The demand for withdrawing VAT on English medium schools went at its peak after the government decided to scrap VAT on tuition fees at private universities, medical colleges and engineering colleges in September 2015, following a strong protest by students in Dhaka. Marking the success of protesters, Bangladesh English Medium School Association started demanding withdrawal of VAT on English medium schools that led to the filing of the writ petition.