HC questions legality of VAT on private varsities

The High Court (HC) on Sunday issued a rule upon the government asking it to explain within three weeks why imposing 7.5 per cent VAT on private universities would not be declared illegal. The HC bench comprising Justice Sheikh Hasan Arif and Justice JN Deb Chowdhury issued the rule after hearing a writ petition filed last week by a teacher and students of a private university challenging an NBR notification. On August 4, Daffodil International University’s law department teacher Khandaker Didar-us-Salam, student Arif Mahmud and the varsity’s journalism department student Farhad Hossain filed the writ challenging the gazette notification issued by NBR in this regard. On June 30, the national budget for the next fiscal year was passed with a provision of 7.5pc VAT on tuition fees of private universities and private medical colleges.
Later on July 4, the National Board of Revenue (NBR) notified that 7.5pc VAT would be imposed on tuition fees of private universities and private medical colleges.
Finance secretary, education secretary, NBR secretary and University Grants Commission (UGC) chairman were made respondents of the rule.
According to the petitioners, though VAT has been imposed on private university students, no VAT was imposed upon the students of public universities. The petitioners termed imposition of VAT only on the private universities a discriminatory action, according to a news agency.
- mbz