The finance minister has proposed raising value-added tax (VAT) on private education, which includes English medium schools and private engineering and medical colleges, in the 2015-16 fiscal.
AMA Muhith proposed an increase of VAT imposition on English medium schools from 7.5 percent to a “tolerable level” of 10 percent.
Private medical and engineering colleges, which are currently out of purview of the VAT, will also come inside the “tolerable” 10 percent duty, according to Muhith’s proposal.
Citing that Tk 3 lakh crore budget is not sufficient for a country with a population of about 16 crore, Muhith said: “I have been telling for the past six years that our aim is to widen the size of the budget by increasing the national revenue.”
State revenue this year has been set at over Tk 2 lakh crore, which minister Muhith planned, would be earned through income tax, VAT, supplementary duty and import duty.