Chaos, confusion over education VAT

Students of several private universities took to the streets over the past week to protest against VAT on education, prompting first the national revenue authority to explain that the tax would be paid by the universities, and later compelling the government to scrap it altogether, leading to jubilant celebrations by the protesters.
The government imposed 7.5 percent value-added tax on private universities in the new budget, announced in June. Students, fearing that the tax would be added to their tuition fees, began protesting and on Sept 10, street  demonstrations were held in Dhaka, Chittagong, Rajshahi and Sylhet.
With the slogan, “No VAT on Education”, hundreds of students blocked major roads, especially in Rampura, Uttara, Gulshan and Dhanmondi areas, creating severe traffic jams and disrupting city life. In some places, clashes with police led to dozens being injured.
Later that day, the National Board of Revenue (NBR) in a statement said the VAT was included in the tuition fees and the university authorities would have to pay it. Even Prime Minister Sheikh Hasina told Parliament that “the students won’t have to pay the VAT. The university authorities will pay it.”
On the other hand, Finance Minister AMA Muhith stated that the students would have to pay VAT from next year, leading to confusion and more protests.
On Sept 11, the students announced a fresh three-day programme, and vowed to agitate until the VAT was withdrawn completely.
“The government said we don’t need to pay VAT this year, but we will have to pay from next year. This is not a permanent solution. Education is not a product, so why VAT? We have cancelled our classes and exams as part of our movement, and we will continue,” said Gazi Tanzir Ahmed, a student of World University.
Tonmoy Leonard Cruze, a student of University of Dhaka said, “I strongly agree with the protest issue. To me, education is a basic human need. And the government has to ensure quality education for all. Beside public universities, private universities are playing a vital role in providing education. But it is also true that some private universities have become ‘powerful businesses’ recently.  Strong monitoring is required to stop that. But I don’t think VAT is the solution, because the university authorities will ultimately collect the money from the students.”  
On Sept 14, at a Cabinet meeting headed by the prime minister, the government decided to withdraw the VAT.

As the news spread, demonstrating students removed road blockade and returned to their campuses in jubilant mood.
Later, the finance ministry issued a statement saying: “The government does not want to create any impediment to the educational institutions at any cost and hamper the public life. Considering this point of view, the government has decided to withdraw the imposed 7.5 per cent VAT on private universities, medical and engineering colleges in the fiscal year 2015-16.”
“I was really hoping that the government will change its decision, now we have forced it to happen. This has been a great lesson that together we can do anything. I am thankful to the government and my fellow students,” said Rifat Shuvo, a student of East West University.

Chaos, confusion over education VAT

Students of several private universities took to the streets over the past week to protest against VAT on education, prompting first the national revenue authority to explain that the tax would be paid by the universities, and later compelling the government to scrap it altogether, leading to jubilant celebrations by the protesters. The government imposed 7.5 percent value-added tax on private universities in the new budget, announced in June. Students, fearing that the tax would be added to their tuition fees, began protesting and on Sept 10, street demonstrations were held in Dhaka, Chittagong, Rajshahi and Sylhet. With the slogan, No VAT on Education, hundreds of students blocked major roads, especially in Rampura, Uttara, Gulshan and Dhanmondi areas, creating severe traffic jams and disrupting city life. In some places, clashes with police led to dozens being injured. Later that day, the National Board of Revenue (NBR) in a statement said the VAT was included in the tuition fees and the university authorities would have to pay it. Even Prime Minister Sheikh Hasina told Parliament that the students wont have to pay the VAT. The university authorities will pay it. On the other hand, Finance Minister AMA Muhith stated that the students would have to pay VAT from next year, leading to confusion and more protests. On Sept 11, the students announced a fresh three-day programme, and vowed to agitate until the VAT was withdrawn completely. The government said we dont need to pay VAT this year, but we will have to pay from next year. This is not a permanent solution. Education is not a product, so why VAT? We have cancelled our classes and exams as part of our movement, and we will continue, said Gazi Tanzir Ahmed, a student of World University. Tonmoy Leonard Cruze, a student of University of Dhaka said, I strongly agree with the protest issue. To me, education is a basic human need. And the government has to ensure quality education for all. Beside public universities, private universities are playing a vital role in providing education. But it is also true that some private universities have become powerful businesses recently. Strong monitoring is required to stop that. But I dont think VAT is the solution, because the university authorities will ultimately collect the money from the students. On Sept 14, at a Cabinet meeting headed by the prime minister, the government decided to withdraw the VAT. As the news spread, demonstrating students removed road blockade and returned to their campuses in jubilant mood. Later, the finance ministry issued a statement saying: The government does not want to create any impediment to the educational institutions at any cost and hamper the public life. Considering this point of view, the government has decided to withdraw the imposed 7.5 per cent VAT on private universities, medical and engineering colleges in the fiscal year 2015-16. I was really hoping that the government will change its decision, now we have forced it to happen. This has been a great lesson that together we can do anything. I am thankful to the government and my fellow students, said Rifat Shuvo, a student of East West University.