Private universities call for reviewing VAT

Association of Private Universities of Bangladesh (APUB) today called upon the government to reconsider its decision to impose VAT on the universities.

The private universities are run by trustee boards and value added tax (VAT) is not applicable to the universities, said Sheikh Kabir Hossain, president of the association.

Speaking at a press briefing after a meeting of the association in Dhaka this evening, he called upon the students to stop their demonstrations.

Sheikh Kabir said, "If the issue is not resolved, the association would seek interference of the prime minister and finance minister."

The government slapped 7.5 percent VAT on private universities, and medical and engineering colleges in the current budget, sparking widespread criticisms.

Protesting the VAT, the private university students have started demonstrations, prompting the finance minister and the National Board of Revenue to give clarifications.  

Despite widespread protests and demonstrations that stalled traffic for hours and created a nightmare for Dhaka city commuters yesterday, Finance Minister AMA Muhith categorically said the government would not withdraw the VAT imposed on the private universities.

"The universities will have to pay it without increasing the tuition fees and it cannot be collected from the students," he said at a press briefing in Sylhet.

Similarly, the NBR said it is the private university authorities, not the students, who would pay the VAT.

"The VAT has been imposed not to be collected from the students. The VAT is included within the existing tuition fees. The responsibility of paying the VAT is solely on the university authorities, never on the students," the NBR said in a press release yesterday.

It, however, did not clarify why the government made a fresh announcement of the VAT imposition if it's already included in the tuition fees.