VAT on English medium school fees may go

The government will consider a VAT (value added tax) cut in tuition fees at English medium schools in the upcoming budget for fiscal 2015-16, officials said.

Last year, the government increased the VAT on tuition fees at English medium schools to 7.5 percent from 4.5 percent. Economic Reporters' Forum (ERF) made a plea to reduce the VAT as these schools are no longer considered for just the wealthy. 

Speaking at a pre-budget consultation meeting with the ERF leaders yesterday, National Board of Revenue Chairman Nojibur Rahman said, “We will reconsider the VAT cut on education (English medium schools).”

ERF members also came up with suggestions for the upcoming budget to expand the tax net. 

The ERF asked the revenue authority to tackle the growing incidence of money laundering that takes place through under and over-invoicing, rationalise corporate taxes and tobacco taxes, and help new economic sectors grow. The ERF also asked the NBR to help the ailing capital market get a revival.

“The NBR is trying to seek empowerment in tackling the money laundering issues,” Rahman said.

On tobacco taxes, the NBR chairman said there will be a chapter on the health economy and the consumption of tobacco products in the budget.

ERF President Sultan Mahmud Badal and General Secretary Sajjadur Rahman also spoke at the programme at NBR office.