Value added tax on private education

Education is the most significant driving force of development in the present world. After liberation of Bangladesh and during the last couple of decades, the government has been setting and expanding educational institutions, but facilities so far created have failed to meet the growing demand. From pre-liberation period, the private sector has been supplementing the government efforts and the trend is still continuing. Previously educational institutions were not set up and run with profit motive but now it is. The new educational institutions are charging exorbitant fees from students.

Students from middle-income families face acute problem in managing the exorbitant fees and other expenditures on education. The Education Minister recently asked the private universities to fix fees and other charges that are affordable to common people. The Chancellor of the universities requested in several convocation ceremonies to reduce tuition and other charges. But nothing has happened so far.

Under the circumstances, the government should come forward to take some financial load off the guardians. The guardians expected that formal tuition and other fees of their dependents studying at private universities and medical colleges will be excluded from taxable income to provide a little relief for them. The proposed budget 2015-16 does not have such provision rather it proposed 10 percent VAT on tuition and other fees.

We would like to urge upon the government to withdraw the proposed VAT on tuition and other charges of private universities and colleges which are in fact realized from the students.

Md. Ashraf Hossain

8/A, Ramna, Dhaka-1000.

mah120cb@yahoo.com