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NTV Online
12 December, 2016, 15:08
Update: 12 December, 2016, 15:08
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VAT on English medium schools illegal: HC

NTV Online
12 December, 2016, 15:08
Update: 12 December, 2016, 15:08

Dhaka: The High Court on Monday declared illegal the imposition of 7.5 per cent value added tax (VAT) on the tuition fees of the English medium schools.

An HC bench led by Justice Jubayer Rahman Chowdhury and Justice Mohammad Mozibur Rahman Miah issued the order.

Writ petitioner’s lawyer Dr Shahdeen Malik said that the English medium schools would not have to pay 7.5 per cent VAT to the government from next January.

Earlier on 14 October, 2015, the Supreme Court stayed an HC order that halted the 7.5 VAT on the English medium schools’ tuition fees.

On 17 September, 2015, the HC stayed for six months the collection of value added tax on tuition fees of English medium school students.

In 2010, the government imposed 4.5 per cent VAT on fees and services in English medium schools. In the budget for fiscal 2014-15, the VAT was raised to 7.5 per cent.

The 7.5 per cent VAT on private universities’ tuition fees sparked a wave of protests throughout Bangladesh, compelling authorities to withdraw the VAT.

Encouraged by such protests, the guardians of English medium school students also protested and demonstrated in Dhaka urging a withdrawal of the 7.5 per cent VAT.

Two guardians—Faizul Islam and Selim Azam—filed the petition with the HC, seeking cancellation of VAT on English medium schools.

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