HC verdict on English medium schools’ VAT stayed

The Supreme Court (SC) has stayed a High Court order that declared illegal the imposition of 7.5 percent value added tax (VAT) on the tuition fees of the English medium schools.

A four-member bench of the Appellate Division led by Chief Justice SK Sinha passed the order on Tuesday.

The SC also asked to state counsels to file a leave to appeal with a regular bench in this connection.

The court also fixed January 29 for the next hearing.

Attorney Genral Mahabubey Alam stood for the state and advocate AM Aminuddin for the guardians of the English Medium School.

In 2010, the government imposed 4.5 percent VAT on fees and services in English medium schools. In the budget for fiscal 2014-15, the VAT was raised to 7.5 percent.

The 7.5 percent VAT on private universities’ tuition fees sparked a wave of protests throughout Bangladesh, compelling the authorities to withdraw the VAT.

Encouraged by such protests, the guardians of English medium school students also protested and demonstrated in Dhaka urging a withdrawal of the 7.5 percent VAT.

Two guardians -- Faizul Islam and Selim Azam -- filed the petition with the HC, seeking cancellation of VAT on English medium schools.

On September 17, 2015, the HC stayed for six months the collection of value added tax on tuition fees of English medium school students.

On October 14, 2015, the Supreme Court stayed an HC order that halted the 7.5 VAT on the English medium schools’ tuition fees.

Later, the HC declared illegal the imposition of 7.5 percent value added tax (VAT) on the tuition fees of the English medium schools on December 12.

With UNB inputs