No rollback of VAT on tuition fee: Muhith

SYLHET, Aug 14 (Agencies): The 7.5 per cent VAT imposed on the private universities will not be reduced, the finance minister has announced.
Voicing his dissatisfaction over the movement of private university students for reducing value added tax (VAT), Muhith Friday said the VAT would not be lifted.
"It can't be accepted that they can't give 7.5 per cent VAT while they are able to pay Tk 30,000-50,000 as tuition fee," he said.
The minister was talking to the reporters after distributing foods at a function at Bagbari in Sylhet city marking the 40th death anniversary of Father of Nation Bangabandhu Sheikh Mujibur Rahman.
Students of private universities throughout the country recently arranged various demonstrations demanding withdrawal of the 7.5 per cent VAT on their tuition fee, fixed by the government in the current fiscal.
The government in the budget for the 2015-16 fiscal approved the VAT on tuition fees for higher education in all private universities, and medical and engineering colleges.
On July 4 the National Board of Revenue (NBR) issued an order imposing the VAT.
On a petition filed by a teacher and two students of Daffodil University, the High Court also issued a ruling in this regard on Aug 9.
It asked the secretaries to the finance and education ministries, chairmen of the University Grants Commission and the NBR to explain why the decision to impose the 7.5 per cent VAT would not be declared illegal.