Badrul Huda Sohel :
Private universities were established in the early 1990s considering the higher education of the growing number of students in the country. Due to the limited number of seats in public universities, private universities are the centers of higher education for many meritorious students. At present, more than half a million students are studying in 107 private universities in the country. The private universities of the country are preferred by a large number of students due to the low qualification for admission in these universities as compared to the public universities and the laxity in terms of age.
It is very unfortunate that the proposed budget for the fiscal year 2021-22 imposes 15pc tax on the income of these private universities. I guess the issue is not only irrational, but also ill-judged. The imposition of 15pc tax on the income of private universities has caused deep concern and anxiety in the minds of students and parents at this pandemic situation. The imposition of 15pc tax is totally unreasonable and hence, disappointing.
It is a common misconception that students from rich, aristocratic and affluent families study in private universities. But the reality is that not only rich but also students from middle and lower middle class families are now studying in private universities. For instance, at least 50pc students at Ishakha International University belong to middle and lower middle class families. Not only the children of marginal farmers in Kishoreganj’s haor regions study here, but also the fathers who have been driving auto rickshaws or CNG-run auto rickshaws have had enrolled their children here. This is the common scenario in most of the universities outside Dhaka or the divisional cities.
Due to the corona pandemic, parents of many families have become unemployed and are living with great difficulty and many of those who are working in various non-government offices are not getting salary or other allowances as before. As a result, these parents are struggling to pay their children’s university tuition fees. So the proposal to impose 15pc tax is a death knell for students and parents. A significant number of students are adopting tuition to pay for their tuition fees. Many students are there who save a little bit staying in student mess and send a section of that very money to their parents in their village to contribute to the family.
Universities have been functionally closed since March last year. Participation is not 100pc even though the online method of conducting classes and examinations is introduced. Many students are falling apart due to lack of money and family support. And due to not coming to the campus in person, the students have become indifferent to pay tuition fees as before. On the other hand, UGC has advised the universities to be humane and not to pressurize the students in case of paying their tuition fees. Therefore, the university administration is also showing considerable flexibility in getting tuition fees for the interest of their own existence during the Covid-19 stricken situation. The financial crisis has already reached unbearable heights among the newly approved universities. They cannot pay the salaries of the teachers and staff, neither can they stop the activities of the universities. If 15pc tax is imposed on the income of the university, the university authorities are more likely to add an additional 15pc fee to the pre-determined tuition fee for the students. This means that even if the 15pc tax is actually levied on the earnings of the university, the students and parents will suffer. The government has been allocating vast amount of money to various public universities for higher education. At this critical juncture during the pandemic, the issue of financial aids in the name of stimulus package for higher education is far from the government’s allocation to private universities. Conversely, if the 15pc tax becomes effective, there will be a disparity in higher education.
The Private University Act-2010 states that private universities will be governed by trusts and will be completely non-profitable institutions. If so, then this proposal is in conflict with the Trust Act, 1882 as non-profitable organizations are not taxable under the trust law. However, the news of financial inconsistencies in some private universities has come up in the media. There are also allegations of excessive tuition fees against some private universities. I think action must be taken against the institutions if any financial anomalies are found.
Even several years ago, we witnessed intense resentment and dissatisfaction among students and parents over the imposition of 15pc tax. This dissatisfaction later turned into a massive student movement and the issue was eventually rested to court. Such a volatile situation with education is certainly not desirable. Due to the deteriorating situation of Corona, students are now not thinking of getting admission in the universities. Therefore, private universities which were larger in respect of number of students are now in a dire situation. It is, therefore, desirable that the government will pave the way for higher education by calling the 15pc tax off on private universities in the budget proposed for the fiscal year 2021-22.
(MR. Sohel is Assistant Professor, Department of English, Ishakha International University
E-mail: [email protected]).
