Considering the various
socio economic factors as well as the moral necessity to treat country�s every citizen equally, there should be a uniform policy and VAT should not be levied on any stream of education
VAT on English medium schools
The 7.5 per cent VAT on the countrys English medium schools now also needs to be withdrawn for the same two strong reasons for which recently imposed VAT on private universities was withdrawn. First, in principle education must not be recognized as a commodity in Bangladesh and second when all streams of education in the country is VAT-free, why charging of this tax from English medium schools only. This would be discriminatory, plain and simple.
The perception based on which VAT was imposed on English medium school education way back in 2007 is that societys rich people send their wards to these costly schools and there is an elitist mentality attached to it. While the elitist pride is totally a wrong attitude, it must be said that even middle income groups of people now send their children to these schools and VAT for them is indeed a burden.
The discussion on VAT on English medium schools which was imposed in 2007 has come to limelight when the government was forced to scrap VAT on private university education. At that time two aggrieved guardians of English medium school students filed a writ petition to the High Court challenging VAT on English medium schools. In the wake of this development, the High Court scrapped the 2007 order that imposed VAT on English medium schools.
But the National Board of Revenue went to the Supreme Court and recently it stayed the High Court order for six weeks. While delivering its verdict, the High Court also ordered the concerned authorities to answer why VAT on English medium schools could not be declared illegal. After passing of the six weeks, it is expected the court will quickly decide on the English medium school VAT issue.
Education in English medium schools in our country is a colonial legacy. In the economically advanced countries where the population is hundred per cent literate, spending on education at the tertiary level is regarded as an investment. That means education is seen as a commodity. But the perspective here in Bangladesh is totally different.
On the other hand, in Bangladesh, the government and various NGOs give various incentives in the forms of scholarships and stipends so that dropout from school does not occur. Considering the various socio economic factors as well as the moral necessity to treat countrys every citizen equally, there should be a uniform policy and VAT should not be levied on any stream of education.
