Dhaka: The cabinet on Monday decides to withdraw Value Added Tax (VAT) imposed on the tuition fees of private universities and medical colleges.

The decision was taken at the regular weekly meeting of the cabinet held at the Bangladesh Secretariat with Prime Minister Sheikh Hasina in the chair.

Earlier, the students of private universities have been protesting at the imposition of 7.5 per cent VAT on tuition fees since 9 September.

On 4 July, the National Board of Revenue issued a notification imposing 7.5 per cent VAT on the tuition fees of the private universities.

In face of mass demonstration, the government ‘clarified’ that the VAT was to be paid by respective university authorities and ‘it would not be taxed from the students’.

The students however discarded the ‘explanation’ and threatened to wage strike for three-days, starting from Sunday, if the government does not remove the 7.5 per cent VAT.