According to the verdict, the imposition of the 7.5% VAT was discriminatory and contradictory to the constitutionAccording to the verdict, the imposition of the 7.5% VAT was discriminatory and contradictory to the constitution and, thus, it cannot be realised from January 2017. Later on, the government moved a petition to the Supreme Court, seeking a stay on the High Court verdict. Afterwards, the Chamber Judge of the Appellate Division heard the petition and sent it for yesterday’s hearing at a regular bench. On September 17, 2015, the High Court stayed collection of the VAT for six months, after two guardians filed the writ petition challenging the government decision. The court then also issued a rule asking the authorities concerned to explain why the VAT should not be declared illegal. The government had imposed a 4.5% VAT on fees and services at English medium schools in 2010. But, it was raised to 7.5% in 2014. Interestingly, there is no VAT for Bangla medium schools.
Also Read- High Court: VAT on English medium tuition fees illegal
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 the students on the streets across the capital. Buoyed by the success of the protesters, Bangladesh English Medium School Association started demanding withdrawal of VAT on English medium schools, that led to the filing of the writ petition.Guardians disappointedFollowing the apex court's stay order, many guardians of English medium school students expressed their frustration. They said it was disappointing for them to pay the VAT, which they want to be withdrawn. “We are still paying 7.5% VAT while the government lifted VAT from universities only. After the initial hype and strike by universities students, the government in a cabinet meeting on 14 September 2015 withdrew the VAT for universities. However, after that, we did not pay VAT for a single month only in November 2015 in English medium school. But, from the following month, the VAT was back to square one,” said a guardian preferring anonymity.
