THE Association of Private Universities of Bangladesh (APUB) has said the proposed 15 per cent income tax on private universities is unacceptable and contradictory to the Private University Act 2010. A group of private university students also protested the proposal and gave the government time until June 10 to withdraw the proposal. Otherwise they would wage a strong movement against the move. In 2015, students made the government bow down by withdrawing 7.5 per cent VAT imposed on the private universities. The ruling party men assured several times not to impose VAT on education.
While placing the budget for 2021-22 fiscal in Parliament on Thursday, Finance Minister AHM Mustafa Kamal proposed a 15 percent tax on private universities, and private medical, dental and engineering colleges, including the ones offering IT education. The new fiscal year starts on July 1. This proposal has created concern among all stakeholders, including students and their guardians. The APUB said private universities are non-profit organisations and operating as trusts in line with the Private University Act of 2010.
During the pandemic, many private universities are facing financial crises. Paying salaries of teachers and staffers and rent of buildings that house the universities have becomes uncertain. In this situation, imposing 15 per cent tax on the income of private universities might lead to the closure of some newly approved private universities. The universities are helping the expansion of higher education in Bangladesh and have a remarkable contribution to reducing the number of students going abroad for studies thus saving foreign currency as well as reducing brain drain. Rather, many students from abroad are coming to Bangladesh for higher studies and this leads to foreign currency earnings by these institutions. Private university students apart from demanding withdrawal of the proposed 15 per cent tax also called for introducing uniform tuition fees and uniform grading system and stimulus package for the students so that they don’t drop out due to the Covid-19.
The government should not impose income tax on private universities rather it should extend assistance by declaring stimulus packages. The government must recognise the role of private universities in creating and disseminating knowledge, and extend assistance to ensure quality education. We ask the government to come out of the colonial mentality and treat private and public institutions of higher education equally, like in North American countries.
