The government today decided to withdraw the 7.5 percent VAT imposed on private universities and medical colleges' tuition fees in face of mass student protests.

The decision was announced in a notice issued from the finance ministry this afternoon.

"The government in no way wants to create obstacle in the educational institutions and cause troubles in people's lives. Considering the issue from this angle, the government has decided to withdraw 7.5 percent VAT which was imposed on private universities, medical colleges and engineering colleges in the Fiscal Year 2015-16," the press release reads.

The pull out took place after four days of student protests in Dhaka and elsewhere in the country. Students all over greeted the decision with joyous rallies.

National Board of Revenue (NBR) Chairman Md Nojibur Rahman said the government will withdraw the 7.5 percent VAT that was imposed on the tuition fees of private universities.

Students cheering after the government scrapped its decision to impose 7.5 percent VAT on private university and medical college tuition fees on September 14, 2015. Photo: Zahed Khan

"From now, there will be no VAT on the private universities' tuition fees. And it is a government decision," he said.

The NBR chairman came up with the statement responding to a query during a press conference held at his office in Dhaka this afternoon.

The students have been demonstrating for withdrawal of the VAT since Thursday. Road blockades were put up that forced a lockdown in Dhaka on Thursday, Saturday, Sunday and today.

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Meanwhile, students already pulled out their road blockades placed on key points in the capital soon after television channels broadcast the news around noon.

Talking to The Daily Star, an agitating student at Kakoli intersection in the capital, seeking anonymity, said they have decided to withdraw the road blockade following the government decision. 

Traffic movement has resumed along Uttara, Banani, Gulshan and Dhanmondi areas.

ALSO READ: VAT protest on, key Dhaka roads blocked again

The notice was issued around 3:30pm today, signed by finance ministry's Senior Information Officer Shahedur Rahman. It hoped that the students would stop their protests now.

Yesterday, in face of protests, Finance Minister AMA Muhith hinted a softer stance regarding the VAT imposition and said the government's decision in this regard "was not rigid".

DHAKA STOPPED FOR FOUR DAYS

Anti-VAT demonstration spread like wildfire after police fired upon a demonstration of East West students last Wednesday. The next day, private university students poured into streets and stopped Dhaka on its tracks.

Carrying placards, a student demonstrate at Banani Chairmanbari to press for withdrawal of 7.5 percent VAT on private universities. The demonstrations blocking different major thoroughfares in Dhaka Sunday threw the city out of gear again. Photo: STAR

Compelled by the protests, the government "clarified" on Thursday that the VAT was to be paid by respective universities and "it would not be taxed from the students".

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The students rejected the "explanation" saying they would be taxed eventually in one way or other and called a three-day strike. After Thursday, they blockaded Dhaka on Saturday, Sunday and today.

Protests spread in other parts of the country including Rajshahi, Chittagong and Sylhet where agitating students held demonstrations and blockaded roads in those four days.

TODAY'S PROTEST, BLOCKADE

The second day of strike kicked off with East West University students blockading Rampura bridge around 10:30am, Badda Police Station Officer-in-Charge Abdul Jalil said.

Asian, Shanto Marium, BGMEA and Uttara university students occupied House Building area in Uttara with large numbers around the same time.

Students of Stamford University, University of Liberal Arts, United International University and University of Asia Pacific blockaded Satmasjid road around 11:15am.

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American International University of Bangladesh (AIUB) students and those of other universities blockaded Kakoli in Banani area. They claimed they were attacked by Titumir College unit activists of ruling party's student front Bangladesh Chhatra League.

Daffodil University and other university students occupied Dhanmondi 27 road and stayed for hours. They all left the streets after televisions broadcast the news of VAT withdrawal around noon.