Private education to get costlier

Finance minister AMA Muhith yesterday in his budget speech proposed to impose a 10 per cent value-added tax (VAT) on the country’s private universities, and medical and engineering colleges. He said this rate would keep ‘the tax burden at a rational level'.
Currently, only English medium schools of the country have been paying VAT at a rate of 7.5 per cent in the education sector.
“Although VAT is currently being levied on English medium schools at a truncated rate of 7.5 per cent, private universities, medical colleges and private engineering colleges have remained beyond the reach of the VAT net. I propose to bring these sectors under the VAT net as well,” said Muhith.
Private university authorities, however, said such imposition of VAT will be illogical and put extra burden on students. Prof. Prafulla Chandra Sarker, vice chancellor of Prime University, told The Independent that the government should not impose any kind of VAT on the education sector.
“This is illogical. We don’t see such things in other countries. Such attempts will affect the transfer and expansion of knowledge,” he said.
Prof. Zakaria Lincoln, the acting vice chancellor of IBAIS University, said, “The imposition of VAT will put extra burden students by raising their tuition charges and discourage those who want to pursue higher education.”

Private education to get costlier

Finance minister AMA Muhith yesterday in his budget speech proposed to impose a 10 per cent value-added tax (VAT) on the countrys private universities, and medical and engineering colleges. He said this rate would keep the tax burden at a rational level. Currently, only English medium schools of the country have been paying VAT at a rate of 7.5 per cent in the education sector. Although VAT is currently being levied on English medium schools at a truncated rate of 7.5 per cent, private universities, medical colleges and private engineering colleges have remained beyond the reach of the VAT net. I propose to bring these sectors under the VAT net as well, said Muhith. Private university authorities, however, said such imposition of VAT will be illogical and put extra burden on students. Prof. Prafulla Chandra Sarker, vice chancellor of Prime University, told The Independent that the government should not impose any kind of VAT on the education sector. This is illogical. We dont see such things in other countries. Such attempts will affect the transfer and expansion of knowledge, he said. Prof. Zakaria Lincoln, the acting vice chancellor of IBAIS University, said, The imposition of VAT will put extra burden students by raising their tuition charges and discourage those who want to pursue higher education.