HC Stays Decision Declaring VAT on English-Medium Schools
The High Court decision, announcing the value included tax (VAT) forced on educational cost expenses of English-medium schools as unlawful, has been remained.
The Appellate Division's order came on Tuesday after the National Board of Revenue (NBR) recorded an appeal. The 4-member bench led by Main Justice Surendra Kumar has instructed the NBR to document a petition over the December 12 decision and settled January 29 for the next hearing.
A 4.5 percent VAT had been imposed on the tuition fees of English-medium educational institutions in 2012. The VAT was increased to 7.5 percent in the budget for fiscal 2014-15, and was also extended to cover private universities. The tax on university students was dismissed after they launched large-scale protests.
Following the success of the university protests, guardians of English-medium students began protests to remove the tax on tuition fees in the schools. In September 2016, the High Court stayed the collection of VAT after hearing a petition filed by guardians of two students.
The court issued a rule asking why the collection of VAT should not be deemed illegal. The NBR secured a stay of eight weeks on the High Court order after a hearing with the Supreme Court's chamber judge.
More than a year after the petition, the High Court settled the rule with the verdict on December 12, 2016 when it said that imposing VAT on tuition fees of English-medium schools were illegal.