VAT rises on English schools, jewellery

The finance minister in his budget speech Thursday proposed to increase truncated Value Added Tax (VAT) on English medium schools from 4.5 per cent to 7.5 per cent.
He also proposed to raise net VAT to 7.5 per cent from the existing 4.5 per cent on some other services, like - motor garage, workshop, dockyard, photograph maker, immigration advisor, and transport contractor (except petroleum products carrying contractor).
A M A Muhith proposed to exempt meditation service from payment of VAT, as physically ill and mentally dejected people get cured by taking meditation.
He said land development and building construction sectors and jewellery services are paying 1.5 per cent and 2.0 per cent net VAT respectively, and proposed to raise these to 3.0 per cent. Besides, he proposed to raise net VAT on general restaurant service (non-air conditioned) to 7.5 per cent from the existing 6.0 per cent.
Apart from these, the minister proposed inclusion of some services, like - procurement provider, security service, transport contractor, and imported service, to the relevant VAT exemption notification.