The comments made by the state minister for finance while he was defending the government’s proposal to impose 10% VAT on private universities, were ill-judged and lack foundation.
His claim that people choose private hospitals because they “do not like the beds” misses the point.
In the main, people turn to private medical and education services because the government cannot provide sufficient spaces for everyone, not because they do not like the beds.
It goes without saying that more people would use public institutions if more medical services and university places were made available by the public sector.
The plain fact is that the public sector is failing to properly supply either the quantity or the quality of educational and medical services which our population needs.
Hampering the right of citizens to choose private alternatives is not in the public-interest. Taxing the private sector will merely limit healthy competition and shift resources around, while failing to accomplish anything to ensure better public services.
The government should be focusing on improving public hospitals and universities, not criticising citizens who choose to go private.
Around 450,000 students study at 85 private universities and 64 private medical colleges in Bangladesh. Imposing new taxes on the large number of students attending these institutions may both harm them, and encourage more citizens to pay for private education and medical care abroad.
The government needs to address the deep-seated problems and resource constraints which hold back public hospitals and universities. It must tackle corruption and mismanagement as well as committing to increase public investment, if it is serious about wanting more people to use public hospitals and universities.
