VAT on private universities withdrawn
15 Septembar 2015, Nirapad News: The value added tax (VAT) on private universities and medical colleges has been withdrawn, according to a finance ministry press release today (Monday).
“The government in no way wants to create any hindrances to educational institutions as well as to people’s life. Considering this aspect, the VAT on private universities and medical colleges has been withdrawn for the current 2015-16 financial year (FY16),” the release said.
In the press release, the government hoped that the students and teachers would return soon to their respective educational institutions and ensure that there would be no hindrances to the development and progress of the country.
It also said that Finance Minister AMA Muhith in his budget speech proposed 10.0 percent VAT on private universities and medical colleges referring that English medium schools had been paying 7.5 percent VAT.
Prime Minister Sheikh Hasina, however, suggested cutting the proposed VAT to 7.5 percent while passing the budget in June this year, the release said, pointing out that a group of students resorted to demonstration demanding withdrawal of the VAT after three months of passing of the new budget.
It said that each and every household of the country is now showing great enthusiasm and is eventually spending lot of money for quality education of their children despite limited capability. Education in private educational institutions is expensive.
The release mentioned that the prime minister has attached the highest priority to the education sector as she believes that the development of the country would be faster with providing the nation proper education.
In line with this view, the government has been providing a large number of students with scholarships, food assistance and distribution of 33 crore textbooks for free, it said.