Dhaka, Bangladesh (BBN)-Private education in Bangladesh is going to be more costly as Bangladesh government has proposed to bring the private educational institutions under VAT net.
Finance Minister AMA Muhith made the proposal while delivering national budget for the fiscal year 2015-16 at the national parliament in Dhaka Thursday afternoon.
Ten percent value-added tax (VAT) will be imposed on the Private Universities, Private Medical Colleges and Private Engineering Colleges like the English Medium School, Muhith said.
Earlier, only English Medium Schools used to pay VAT at a truncated rate of 7.5 percent.
“Although VAT at a truncated rate of 7.5 percent is currently levied on English Medium School; the Private Universities, Private Medical Colleges and Private Engineering Colleges are still beyond the boundary of the VAT net,” the minister said at his budget speech.
“I hereby propose to bring these sectors under VAT net as well,” he added.
“However, in order to keep the tax burden at a rational level, I propose to impose VAT at the truncated rate of 10 per cent on these sectors,” the finance minister said.