Staff Reporter :
The Association of Private Universities of Bangladesh (APUB) has made a strong appeal for the withdrawal of all forms of VAT and taxes imposed on non-profit private universities in the country.
In a statement released on Tuesday, Belal Ahmed, Director of APUB, urged the cooperation of all stakeholders in supporting this demand, which aims to address what the association describes as “step-motherly treatment and discrimination” towards private universities. The statement was issued with the approval of the relevant authorities.
The statement emphasised that private universities operate as non-profit higher education institutions. Without any government assistance, these universities bear the substantial costs of operation entirely through student fees.
Any surplus funds generated are reinvested into the university, supporting campus construction and expansion, the development of laboratories and libraries, as well as faculty and student research activities.
“Any surplus funds are deposited into the university’s account and are used for campus construction or expansion, the development of labs and libraries, as well as for faculty and student research activities,” the statement noted.
The statement further criticised the government’s policy of deducting a 15 percent tax from the accumulated funds of these institutions, arguing that this directly reduces the research budget by 15 percent-from 100 percent to 85 percent.
“There is no alternative to research work for the development of the country and the education system,” the statement asserted.
The APUB also highlighted a broader issue, pointing out that foreign nationals working in various large public and private institutions within Bangladesh are able to send substantial amounts of money abroad, while many qualified Bangladeshis remain unemployed.
The statement contrasted this with the situation faced by Bangladeshi students who pursue PhDs and research abroad, where they often receive scholarships from other countries that use the research outcomes for their own national development.
“In contrast, our government deducts research funds as VAT and tax,” the statement lamented, calling for immediate policy changes to support the growth and development of private universities in Bangladesh.
The statement further stated that despite past successes in legal actions and movements to abolish VAT and taxes, private universities, which have been victims of discrimination, faced a reimposition of taxes by the National Board of Revenue (NBR) this year.
Without any discussion on the matter of taxes, funds were withdrawn from the universities’ bank accounts. In fact, prior to the recent Eid festival, many universities’ bank accounts were frozen for an extended period, leading to inhumane situations where the universities were unable to cover regular expenses or pay salaries and allowances to teachers and staff.
Drawing attention to removing existing disparities, APUB further articulated that in various countries around the world, education is provided for free, and governments also fund research activities. This system is also in place at public universities in our country.
However, instead of receiving financial support, private universities are subject to a 15 percent tax.
In addition, a 5 percent VAT and a sales tax ranging from 2 percent to 7 percent are imposed on all university purchases, and a further 15 percent income tax is deducted from the hard-earned savings of these institutions.
As a result, private universities are deprived of the desired level of development.
The APUB believes that if the amount currently deducted as taxes from private universities were allocated as government grants for their development, the existing disparity would be somewhat reduced.
Through the sacrifice of many lives and the courageous movement of millions of students across the country, we have achieved the first step of victory. In this anti-discrimination movement, students from private universities stood shoulder to shoulder with those from public universities, selflessly leading from the front on the streets.
Yet, there is a significant disparity between the public and private sectors in our higher education system. Public universities operate on our tax money, while, despite being non-profit institutions, private universities are burdened with VAT and various other taxes by the government, it added.
APUB said that to ensure fairness in higher education, it is imperative to eliminate the disparities between public and private universities and remove the unjust financial burdens on private institutions.