English-medium schools
SC stays HC order for scrapping vat
There is no bar for the NBR to collect the VAT from English-medium schools: AG
The Supreme Court yesterday stayed a High Court (HC) order that halted the 7.5 per cent value added tax (VAT) on the tuition fees charged by English-medium schools.
Justice Syed Mahmud Hossain, chamber judge of the Appellate Division, stayed the HC order for six weeks following a petition filed by the National Board of Revenue (NBR) challenging the HC order.
Attorney general Mahbubey Alam told reporters that there is no bar for the NBR to collect the VAT from English-medium schools. He said students of such schools have to cough up 7.5 per cent VAT to the government following the apex courts order. He also said that although the VAT had been imposed on English-medium schools since 2007, the HC stayed the imposition of VAT following a writ petition last month.
On September 17, an HC bench comprising Justices Shamim Hasnain and Mohammadullah had stayed for six months the government decision that imposed 7.5 per cent VAT on the tuition fees of English-medium schools.
The HC bench had come up with the order in response to a writ petition filed by two guardians of an English- medium school challenging the legality of the governments decision. The court had also issued a rule upon the authorities concerned to explain why the decision of imposing the VAT should not be declared illegal.
Dr Shahdeen Malik, counsel for the petitioners, told the court that the imposition of VAT on English-medium schools was discriminatory and a violation of Articles 15, 17 and 19 of the Constitution.
It may be mentioned that the 7.5 per cent VAT on private universities tuition fees sparked a wave of protests throughout Bangladesh, forcing the authorities to withdraw the VAT. In the same vein, guardians of English-medium school students also protested and demonstrated in Dhaka, urging immediate withdrawal of the imposed VAT.
