HC: Why VAT on private universities would not be declared illegal
9 August 2015, Nirapad News: The High Court issued a rule upon the government asking to explain within three weeks why imposing 7.5 percent VAT on private universities would not be declared illegal.
The bench of Justice Sheikh Hasan Ali and Justice JN Dev Chowdhury issued the ruling on Sunday afternoon in response to a writ petition filed by Barrister Hasan M Azim.
Earlier on August 4, Daffodil International University’s law department teach Khandaker Didar-us-Salam, student Arif Mahmud and varsity’s journalism department student Farhad Hossain filed the writ petition challenging the gazette notification issued by NBR in this regard.
On June 30, the budget for the next fiscal year was passed with a provision of 7.5% VAT on tuition fees of private universities and private medical colleges.
Later on July 4, National Board of Revenue (NBR) issued a gazette notification imposing 7.5% VAT on tuition fees of private universities and private medical colleges.
Finance secretary, education secretary, NBR secretary, University Grant Commission (UGC) chairman were made respondents of the rule.
According to the writ petition, though VAT has been imposed on private university students, no VAT was imposed for public university students. It is a discriminatory decision.
On August 6, the students from private universities met President Abdul Hamid and submitted a memorandum seeking withdrawal of the 7.5% VAT on private tertiary education.