'VAT on education' withdrawn

In the face of widespread student movement, the government on Monday decided to withdraw the 7.5 per cent value added tax (VAT) it had imposed on tuition fees of private universities, medical and engineering colleges.
The decision was announced in a press release signed by the finance ministry senior information officer, Shahedur Rahman.
The government alleged that a “handful of students” have embarked on street agitations, creating a “scope for obstructing the country’s development flow.”
The press release read, “At the time of passage of the budget in the month of June, the proposed 10 per cent VAT [on education in private universities and colleges] was curtailed to 7.5 per cent at the instruction of the prime minister. After nearly three months, a handful of students have embarked on movement against the VAT.”
Citing several examples of Sheikh Hasina-led government’s contribution to the education sector, the press release said, “Those who study in private educational institutions spending a lot of money, do not want to pay additional 7.5 per cent. And that is why, they have quit classes, hampering public life by holding rallies at places and creating scopes for obstacles in the path of development.” 

It further said, “The government does in no way want to let public life as well as the educational activities be hampered.”
From that point of view, it added, the government has decided to withdraw the 7.5 per cent VAT it had imposed in the 2015-16 fiscal.
The government hoped that the teachers and students of private universities would now stop their demonstrations and go back to classes, the release added.

The recent spate of street agitation against the VAT on education began on 9 September when a group of East West University students took to streets at Rampura and clashed with law enforcers.

Nearly 30 students were injured in the clash when the law enforcers charged batons and opened fire on the students.
The student movement then spread across the city and some other places in the country on the very next day.