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VAT or No VAT?

Saleque Sufi |
Update: 2015-09-12 06:38:00
VAT or No VAT?

DHAKA: Bangladesh capital Dhaka witnessed traffic mess from private university students creating road blockades protesting against imposition of Value Added Tax (VAT) on tuition fees.

Commuters on all weekdays in Dhaka suffer from massive gridlocks. The sufferings on Thursday were worst ever as blockades chocked traffic movement still further.

Suffering commuters had some sympathy for the agitating students, as it was a protest against VAT on tuition fees.

However, an announcing from National Board of Revenue (NBR) stating that students will not be required to pay VAT rather universities will account for it put an end to the blockade.

Some political parties tried to grab the opportunity exploiting the situation. Hope government will realize the situation and will deal matters with diligence.

No government action should add fuel to fire. There is no existence of formal opposition politics now. Peaceful political environment is essential for smooth implementation of major infrastructure development projects for achieving Vision 2021. 

Dhaka and Bangladesh has witnessed mushrooming of private universities over the past decade or so. Not all the universities have required teaching stuff, own campus, facilities for research.

Only few university degrees have recognition abroad. Yet every year many students have to spend hard earned money of their parents as public universities have restricted seats and getting admission into public universities often turns into nightmare for many.

There are huge differences in tuition fees for students of public and private universities. In consideration of all above there can be lively debates whether the quality of higher education is improving or going down with mushrooming of private universities.

The private universities got approval of authority as non-profitable organization.

The present reality of the private universities can no longer justify that those are non-profitable organizations. Many senior academics of public universities work part time in private universities.

We find some justifications for imposing VAT on Private Universities on profits universities make from tuition fees of students. But this in no way should be taken from students. Parents already have to pay through the nose in arranging fees for their wards.

They must not be further burdened with additional tuition fees.

Bangladesh needs more public universities, where government provides subsidy. Every year more and more quality students are coming out from pre-university level.

Many of them are not fortunate enough for getting into public universities. Not that all are wards or wealthy parents. Many students of middle class limited income parents get into private universities.

Government must ensure that private universities conform to the conditions of approval. All Private universities must have own campus, required minimum numbers of qualified academics, research facilities.

There must be a well crafted monitoring and evaluation.

We have seen some sections of society without properly assessing the situation bitterly criticized government imposing the vat. Government has just announced pay revision for government officials. Government has to explore all possible areas of earning revenues.

Private universities definitely make profits otherwise such mushrooming will not happen. As long as Vat imposing does not increase tuition fees burden on students we find no issues with it.

If a small grocery shop owner pays vat why not profit earning private universities.

Students protesting against tuition fee increase are all right. We also admire that the agitated students did not indulge into vandalism.

But the students should also realize the blockade caused immense miseries to the commuters. Government should also make matter clear before the situation grew to boiling point. Police excesses were unwarranted.

There remains some confusion, as there are conflicting statements from responsible policy makers about Vat.  There must be a clear decision about VAT or no VAT and who has to account for it ?

BDST: 1625 HRS, SEP 12, 2015
RS

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