A former chairman of the National Board of Revenue (NBR) on Thursday came up with a number of questions in the wake of the revenue authority’s clarification over the Value Added Tax (VAT) imposed on private universities. “The explanation has raised many questions. Firstly, we’ll have to know whether VAT was included with the previous tuition fees of the students or not. Secondly, is it an attempt to cool down the ongoing student movement to withdraw VAT?” NBR chairman Bodiur Rahman told UNB on Thursday.
He also said, if the VAT was included earlier then why a few days ago the Finance Minister said it cannot be accepted that they (Private university students) cannot give 7.5 percent VAT while they pay Tk 30,000-Tk 50,000 as tuition fees.
“If the VAT was included in the tuition fees, then the reality is that the government can’t realize it from the university authorities. So, now the government’s duty is to put pressure on the authorities to realize the VAT,” Badiur added.
Amid protests by the private university students in various parts of the capital and some other cities which created unprecedented traffic chaos in the capital, the NBR came up with clarification saying, “VAT has not been imposed to realise it from the students anew as it remains included in the existing tuition fees. The university authorities are fully responsible for paying the VAT money, not the students in any way.”
Echoing the NBR clarification, Finance Minister AMA Muhith at a press briefing in his hometown Sylhet said, “The VAT won’t be withdrawn in any way. But the students will not pay the VAT, it’s the private university authorities who will pay the VAT. The private university authorities won’t be allowed to raise tuition fees of the students,” he said. Earlier on July 4, the NBR issued a notification imposing 7.5 percent VAT (Valued added tax) on the tuition fees of the private universities and medical colleges.
