Points to ponder

NBR clarification raises questions

The National Board of Revenue (NBR) said in a press release that the 7.5 per cent VAT has not been imposed on the students. Rather, the universities have to pay it. It also said that VAT is included in the existing tuition fee.
But the private university authorities have asked that wherefrom will they get VAT, as their only source of income is tuition fees from the students. Prof Dr Anwar Hossain, Vice-Chancellor of South East University, told The Independent that the universities will pay VAT, but it has to be collected from the students. “The private universities are run with the money the students pay. How will the universities pay VAT? We will collect it from the students,” he said, adding that they are closely monitoring the situation. Professor Dr M Firoze Ahmed, VC of Stamford University, said: “How can the universities pay VAT? They have to first earn it from the students, and then they can pay it.”
“We do not accept the NBR’s statement because the universities will not pay VAT. The students will have to pay it from their own pocket. We want withdrawal of VAT from education,” he said. Meanwhile, a former chairman of the National Board of Revenue (NBR) yesterday came up with a number of questions in the wake of the revenue authority’s clarification over the Value Added Tax (VAT) imposed on private universities. “The explanation has raised many questions. Firstly, we’ll have to know whether VAT was included with the previous tuition fees of the students or not. Secondly, is it an attempt to cool down the ongoing student movement to withdraw VAT?” NBR chairman Bodiur Rahman said. He also said if the VAT was included earlier then why a few days ago the Finance Minister said it cannot be accepted that they (Private university students) cannot give 7.5 percent VAT while they pay Tk 30,000-Tk 50,000 as tuition fees. “If the VAT was included in the tuition fees, then the reality is that the government can’t realize it from the university authorities.  So, now the government’s duty is to put pressure on the authorities to realize the VAT,” Badiur added.Amid protests by the private university students in capital and some other cities, the NBR came up with clarification saying, “VAT has not been imposed to realise it from the students anew as it remains included in the existing tuition fees. The university authorities are fully responsible for paying the VAT money, not the students in any way.”

 

Points to ponder

NBR clarification raises questions

The National Board of Revenue (NBR) said in a press release that the 7.5 per cent VAT has not been imposed on the students. Rather, the universities have to pay it. It also said that VAT is included in the existing tuition fee. But the private university authorities have asked that wherefrom will they get VAT, as their only source of income is tuition fees from the students. Prof Dr Anwar Hossain, Vice-Chancellor of South East University, told The Independent that the universities will pay VAT, but it has to be collected from the students. The private universities are run with the money the students pay. How will the universities pay VAT? We will collect it from the students, he said, adding that they are closely monitoring the situation. Professor Dr M Firoze Ahmed, VC of Stamford University, said: How can the universities pay VAT? They have to first earn it from the students, and then they can pay it. We do not accept the NBRs statement because the universities will not pay VAT. The students will have to pay it from their own pocket. We want withdrawal of VAT from education, he said. Meanwhile, a former chairman of the National Board of Revenue (NBR) yesterday came up with a number of questions in the wake of the revenue authoritys clarification over the Value Added Tax (VAT) imposed on private universities. The explanation has raised many questions. Firstly, well have to know whether VAT was included with the previous tuition fees of the students or not. Secondly, is it an attempt to cool down the ongoing student movement to withdraw VAT? NBR chairman Bodiur Rahman said. He also said if the VAT was included earlier then why a few days ago the Finance Minister said it cannot be accepted that they (Private university students) cannot give 7.5 percent VAT while they pay Tk 30,000-Tk 50,000 as tuition fees. If the VAT was included in the tuition fees, then the reality is that the government cant realize it from the university authorities. So, now the governments duty is to put pressure on the authorities to realize the VAT, Badiur added.Amid protests by the private university students in capital and some other cities, the NBR came up with clarification saying, VAT has not been imposed to realise it from the students anew as it remains included in the existing tuition fees. The university authorities are fully responsible for paying the VAT money, not the students in any way.