Students protest VAT on private universities

The government’s move to impose 10 per cent value added tax (VAT) on private universities and colleges has triggered protests by students, who termed it as “suicidal for higher education for middle income families”.
The agitating students have formed a platform, Private University Education Rights Movement, to demand rollback of the government’s decision. As part of its programme, the platform held human chain demonstrations in Gulshan and Dhanmondi areas for over one hour yesterday.
Around 3,000 students from Atish Dipankar University of Science and Technology, Daffodil International University, Green International University, Stamford University, South East University, Prime Asia University and others participated in the protest.
Rayhan Taharat Lion, a spokesperson of the platform, said, “Such imposition of VAT is suicidal for our higher education. It'll curb our basic right to education.”
At present, around 4.5 lakh students are studying at 80 private universities and 64 private medical colleges in the country, according to the University Grants Commission.
A private university student now spends around Tk. 3 lakh to Tk. 8 lakh for completing a four-year graduate course.
The students alleged that private universities increase tuition fees quite often, regardless of the quality of education being imparted. The authorities of different private universities also said that imposition of VAT would entail additional expenditure for students and guardians.
“It's not that all students at private universities come from rich families. Even those from middle and lower-middle income families study in these institutions these days. It will be especially bad for them when this 10 per cent VAT is imposed,” Dr M Shamsul Haque, vice chancellor of Northern University Bangladesh, told The Independent.
“If education becomes more expensive, then many students may opt to study abroad. Moreover, meritorious students who fail to get admission in public universities due to shortage of seats will be the worst hit,” he added.
Prof. Md Golam Samdani Fakir, vice chancellor of Green University of Bangladesh, argued that the government move was “unethical” because the Private University Act, 2010, stated that such institutions will be non-profit organisations to cater to the needs of higher education. “It’s being said that education is non-profit and at the same time taxes are being levied. It is not justifiable to impose VAT on education as it is not a product,” he said.
“The government should rethink the matter seriously. It would be even more difficult for the students at private medical and engineering colleges. The impact would be very serious there,” he added.
Prof. Imran Rahman, vice chancellor of University of Liberal Arts Bangladesh, said, “We've got a notice from the government, but we need more clarification on it.”
Prof. Md Abdul Mannan, vice chancellor of European University of Bangladesh, said, “I don’t support the imposition of taxes on education. The income level in our country has still not reached the level of that in developed countries.”
However, several experts opined that in reality many universities were making profits and it would be justifiable to impose tax on the institutions, but it would be incorrect to levy the burden on the students by increasing their tuition fees.
Prof. Abdul Kadir Bhuiyan, former vice chancellor of Khawja Yunus Ali University, said, “It’s true that most of the private universities are not providing better education but rather doing business. But still students have interest for higher education. Additional burden in the name of VAT should not be imposed on students. It can be imposed on the authorities of the private universities.” In his budget speech in Parliament on June 4, finance minister AMA Muhith said, “Although VAT at a truncated rate of 7.5 per cent is currently levied on English medium schools, private universities, medical and engineering colleges are still beyond the purview of VAT.”
The finance minister proposed to impose a 10 per cent VAT on these educational institutions—a rate he described would keep “the tax burden at a rational level”.
In 2010, the government had imposed 4.5 per cent VAT on private universities. But it was forced to cancel the decision within a month following widespread demonstrations by students in Dhaka.

Students protest VAT on private universities

The governments move to impose 10 per cent value added tax (VAT) on private universities and colleges has triggered protests by students, who termed it as suicidal for higher education for middle income families. The agitating students have formed a platform, Private University Education Rights Movement, to demand rollback of the governments decision. As part of its programme, the platform held human chain demonstrations in Gulshan and Dhanmondi areas for over one hour yesterday. Around 3,000 students from Atish Dipankar University of Science and Technology, Daffodil International University, Green International University, Stamford University, South East University, Prime Asia University and others participated in the protest. Rayhan Taharat Lion, a spokesperson of the platform, said, Such imposition of VAT is suicidal for our higher education. Itll curb our basic right to education. At present, around 4.5 lakh students are studying at 80 private universities and 64 private medical colleges in the country, according to the University Grants Commission. A private university student now spends around Tk. 3 lakh to Tk. 8 lakh for completing a four-year graduate course. The students alleged that private universities increase tuition fees quite often, regardless of the quality of education being imparted. The authorities of different private universities also said that imposition of VAT would entail additional expenditure for students and guardians. Its not that all students at private universities come from rich families. Even those from middle and lower-middle income families study in these institutions these days. It will be especially bad for them when this 10 per cent VAT is imposed, Dr M Shamsul Haque, vice chancellor of Northern University Bangladesh, told The Independent. If education becomes more expensive, then many students may opt to study abroad. Moreover, meritorious students who fail to get admission in public universities due to shortage of seats will be the worst hit, he added. Prof. Md Golam Samdani Fakir, vice chancellor of Green University of Bangladesh, argued that the government move was unethical because the Private University Act, 2010, stated that such institutions will be non-profit organisations to cater to the needs of higher education. Its being said that education is non-profit and at the same time taxes are being levied. It is not justifiable to impose VAT on education as it is not a product, he said. The government should rethink the matter seriously. It would be even more difficult for the students at private medical and engineering colleges. The impact would be very serious there, he added. Prof. Imran Rahman, vice chancellor of University of Liberal Arts Bangladesh, said, Weve got a notice from the government, but we need more clarification on it. Prof. Md Abdul Mannan, vice chancellor of European University of Bangladesh, said, I dont support the imposition of taxes on education. The income level in our country has still not reached the level of that in developed countries. However, several experts opined that in reality many universities were making profits and it would be justifiable to impose tax on the institutions, but it would be incorrect to levy the burden on the students by increasing their tuition fees. Prof. Abdul Kadir Bhuiyan, former vice chancellor of Khawja Yunus Ali University, said, Its true that most of the private universities are not providing better education but rather doing business. But still students have interest for higher education. Additional burden in the name of VAT should not be imposed on students. It can be imposed on the authorities of the private universities. In his budget speech in Parliament on June 4, finance minister AMA Muhith said, Although VAT at a truncated rate of 7.5 per cent is currently levied on English medium schools, private universities, medical and engineering colleges are still beyond the purview of VAT. The finance minister proposed to impose a 10 per cent VAT on these educational institutionsa rate he described would keep the tax burden at a rational level. In 2010, the government had imposed 4.5 per cent VAT on private universities. But it was forced to cancel the decision within a month following widespread demonstrations by students in Dhaka.