HC questions VAT on private university tuition fee

The High Court today questioned legality of imposing 7.5 percent value-added tax (VAT) on tuition fees of private universities.

In response to a writ petition, the court issued a rule upon the government authorities to explain in four weeks as to why the VAT would not be declared illegal.

Secretaries to the ministries of education, finance and law and chairmen of National Board of Revenue and University Grant Commission have been made respondents to the rule, petitioners’ lawyer AKM Salahuddin Khan told The Daily Star.

The NBR on July 4 issued a notification imposing 7.5 percent VAT on tuition fee of students of all private universities and medical colleges.

It was originally proposed in the near Tk 3 trillion budget for 2015-16 fiscal placed in the parliament by Finance Minister AMA Muhith.

The HC bench of Justice Sheikh Hassan Arif and Justice JN Deb Choudhury issued the rule today upon a writ petition filed by a teacher and two students of two private universities.

They submitted the petition last week challenging the NBR notification terming it discriminatory and illegal, since such VAT was not imposed on tuition fees of the public universities.

Every student has equal rights to get education as per the constitution, they said in the petition.

Earlier on August 9, the same HC bench, following another writ petition, issued a rule asking the authorities to explain as to why imposition of 7.5 percent VAT on the tuition fee of students of private universities, and medical colleges should not be declared illegal.

The rule is now pending with the bench, petitioners’ lawyer Hassan MS Azim told this correspondent.

He said he will pray to the court later on to hold hearing on the rule.