NBR clarifies 7.5% VAT on tuition fees is to be paid by private universities, not their students

In the wake of the crippling student demonstrations throughout the country, the National Board of Revenue has clarified that the private universities would be paying the 7.5 percent VAT on tuition fees, not students.

A statement sent to the media by the revenue collector’s PRO Syed A Mumen on Thursday said, “The existing tuition fees include the VAT. The responsibility to pay the amount lies completely with private university authorities and not the students in any manner.”

The statement also clarified there is ‘no scope’ to hike tuition fees.

On July 4, the NBR in an order imposed the VAT on private universities, medical and engineering colleges.

Students of these institutions have been protesting against the decision since then.

On Wednesday, law enforcers and students clashed during demonstrations in front of East West University.

On Thursday, students of other private universities took to the streets blocking key roads with sit-ins effectively crippling the capital, Dhaka.

Students in Chittagong also demonstrated blocking a key intersection for about an hour.

However, the NBR clarification is contrary to Finance Minister AMA Muhith’s comments last month ruling out chances of the VAT’s withdrawal.

“Why will they not pay 7.5 percent VAT if they can pay Tk 50,000-60,000 fees?” he had asked.