Muhith says authorities of private varsities agree to pay VAT

The authorities of the private universities have ‘agreed’ to pay the VAT, Finance Minister AMA Mihith has said while urging the students to be alert against any fee hike. He was addressing a programme in Dhaka on Saturday amid students’ protests against the 7.5 percent VAT imposed on tuition fees at private universities and medical and engineering colleges.
“I said it earlier and reiterating it that the private university authorities will pay the 7.5 percent VAT imposed in the budget. They have already made announcements for this,” Muhith said. “I request the students to be alert…launch demonstration so that the authorities cannot charge extra money in the pretext of VAT,” he added. The finance minister said the size of the national budget increased from Tk 950 billion to around Tk 3 trillion in five years. “We are spending much on the health sector. Besides, we are also increasing allocations for many other sectors. From where will the money come?” he asked. “We have to boost revenue collection for development. And we have to collect this from here and there,” he said. The VAT on tuition fees at private universities was imposed to raise revenue, he said.
“I have calculated that a private university student spends Tk 1,000 a day. This includes his tuition fee, books, library, meals…How much I want to take from it? Only Tk 75,” Muhith said. “I have asked the university authorities to pay the 7.5 per cent VAT from the tuition fees they (currently) collect. They have agreed,” he said. The students have been demonstrating since 10 per cent VAT was proposed in the budget for 2015-16 fiscal year. It was cut to 7.5 per cent when the budget was passed. On September 9 (Wednesday), police charged baton and fired rubber bullets to disperse East West University students demonstrating against the 7.5 per cent VAT at Rampura. The agitations intensified on Thursday as students of several private universities blocked key roads in Dhaka, crippling the capital city. On Thursday afternoon, the National Board of Revenue clarified that the authorities, not the students, would pay the VAT and there was no scope to hike tuition fee.
The students, however, decided to continue their demonstration and called three-day strike at all private universities from Saturday, according to bdnews24.com.
- biplab