VAT on Private Universities Tuition Fees Slightly Reduced

VAT on private universities reduced

The proposed VAT on private universities, medicals and engineering colleges was reduced to 7.5% from the proposed 10%.

Prime Minister Sheikh Hasina has proposed a reduction of value-added tax (VAT) on private universities, medicals and engineering colleges from 10% to 7.5%.

The PM made the observation while addressing the National Parliament session on June 29, 2015 (Monday).

Earlier on June 4, Finance Minister AMA Muhith proposed a 10% VAT on education in private universities and private medical and engineering colleges in fiscal year 2015-16.

Since the finance minister's announcement, educationists and guardians have strongly opposed the government move, saying students have to bear the additional cost of education. Those, who oppose the VAT, say education is a fundamental right of every citizen according to the constitution.

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Account BenefitIn 2010, the government imposed a 4.5% VAT on private universities but backtracked and cancelled the decision a month later following massive protests by students in Dhaka. Currently, around 450,000 students study at 85 private universities and 64 private medical colleges across the country.