Pay more for education

The cost of education in private universities, private medical and engineering colleges might go up if the finance minister's proposal to levy 10 percent VAT on them goes through parliament.

The tax would be an extra burden on the students as their guardians would ultimately have to bear it on top of hefty tuition fees.

Students, guardians and teachers feared a backlash over the proposed VAT.

The previous government in 2010 had imposed 4.5 percent VAT on private universities. But it was forced to rescind the decision within a month following demonstrations by students in the capital.

Talking to The Daily Star, some students and guardians said they were already in a tight spot with the rising tuition fees. The proposed VAT would further aggravate their problems.

“You see it would be the guardians who would ultimately have to pay the VAT as the universities are likely to adjust the costs by hiking tuition fees and other charges,” said Quazi Emdad, father of a student at East West University.

“As there are not enough seats in public universities, a large number of students enrol at private institutions by spending a huge amount of money,” he added.

Nowadays a lot of middle class families send their children to private institutions. It would be a huge burden for them if the tuition fees go up further, mentioned Emdad.

Ishita Azmi, a student of Daffodil International University, said private universities increase tuition fees quite often.

“We'll be in trouble if we have to pay an additional amount to the university on top of tuition fees.”

Leaders of the Association of Private Universities of Bangladesh (APUB) said the government would pursue a “dual policy” of declaring private universities as a non-profit organisation and imposing VAT on them.

“If the private universities are non-profit organisations, how can the government impose VAT on them?” questioned Abul Quasem Haider, a member of APUB.

The students' tuition fees would be hiked if VAT was finally levied on the private universities, he mentioned.

“Public universities can't ensure seats for tens of thousands of students who pass the HSC exams each year. But the government wants to increase the financial burden of the students,” said Quasem, also the founder of Eastern University.

Around 4.5 lakh students are currently studying at 85 private universities and 64 private medical colleges in the country, according to the University Grants Commission.

A private university student now spends around Tk 3 lakh to Tk 7 lakh for completing a four-year graduate course.