VAT to be imposed on English medium schools only

The government is going to impose value added tax (VAT) on English medium schools.

No VAT will be imposed on educational institutions except English medium schools for the fiscal year 2017-18, National Board of Revenue (NBR) said today.

There is no VAT on Bangla medium schools and government-approved English version schools that follow English textbooks published by the National Curriculum and Textbook Board.

Earlier on February 13, the Supreme Court ruled that the government cannot collect VAT from the English medium school students.

The government in fiscal year 2007-08 imposed 4.5 percent VAT on fees and services of English medium schools. In the budget for 2014-15, the rate was raised to 7.5 percent.

In 2010, the government had also brought the private universities under the VAT net (4.5 percent), but lifted it following days of student protest.

In the budget of 2015-16, the government decided to impose 7.5 percent VAT on tuition fees of private universities and medical colleges but it had to backtrack from the decision following massive student protests in September 2015.