We welcome withdrawal of VAT on private varsity students

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THE government decision to withdraw VAT on tuition fees of the private universities has been welcomed by people at all level with a sigh of relief that peace will return to the agitating campuses again. But many have also raised the question at the same time about the decision making mechanism of the government on such a sensitive issue without broad-based consultation in socio-political forums and taking into account the heavy financial load on students and their poor and middle-income families. Students at private varsities are attending as the public varsities can only accommodate 20 percent of students. It is the government failure to build more public varsities for that students can’t be asked to pay tax. In fact, the government has to budge and it has budged at the end facing serious protest of over 4.5 lakh private varsity students having strong roots to public support. We are pleased that the government has retreated from the ‘unjust and illogical’ move as education is treated everywhere free of tax, it is not like any other commodity but the revenue hungry Finance Minister is under tremendous pressure to open new sources of funding for a skyrocketing pay scale for bureaucracy to buy its allegiance. It has backfired but by withdrawing 7.5 percent VAT the government has at least earned the belated praise before allowing the situation to become more volatile in city streets. The protest by students blocking major city roads in front of their varsities over the past few days led to a total breakdown of city transport system forcing people to walk to their destination. Starting with a total defiance of the students’ demand, the Finance Minister hinted on Sunday for the first time that the ‘door to talks is not closed’ putting the signal that the government is looking a way-out. We are happy that he acted quickly to bring peace in private universities. The announcement by the Chairman of National Board of Revenue (NBR) on withdrawal of VAT yesterday put an end to the acrimonious protest in city streets in the capital and some other cities like, Rajshahi, Chittagong and Sylhet. It turned the students’ protest to celebration and peace returned to guardians who were getting panicked about the future of their dependents. The panic spread following the early closure of several private varsities ahead of Eid-ul-Azha festival apparently on pressure of the government to send students home to reduce the severity of the protest. Even unruly elements blamed to be ruling party goons attacked students in the meantime in the city streets to end the protest. But it did not work. As it appears some left coalition partners of the government openly opposed the move along with civil society leaders, leading academics and many within the ruling party. They were apprehensive that it may further isolate the government now in power holding a flawed election. It is a good step that good sense has prevailed in the ruling establishment at the end.

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