Dhaka: The Supreme Court (SC) on Monday said value added tax (VAT) cannot be realised from the students of the English medium schools.

A four-member Appellate Division bench, led by Chief Justice SK Sinha, passed the order after accepting a leave-to-appeal filed by the state against a High Court order.

It also stayed a High Court order that declared illegal the imposition of 7.5 percent VAT on the tuition fees of the English medium schools, reports UNB.

Following the apex court’s order, the National Board of Revenue will collect VAT from the English medium schools, not their students, said Deputy Attorney General SM Moniruzzaman.

On December 12 last, the High Court declared illegal the imposition of 7.5 percent VAT.

Following an appeal by the state, the Supreme Court on January 3 stayed the HC order and asked the state counsels to file a leave-to-appeal with a regular bench in this connection.

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

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

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

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

Later, the HC declared illegal the imposition of 7.5 percent value added tax (VAT) on the tuition fees of the English medium schools on December 12.