2015 Bangladesh student protests

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Students holding a "No VAT on education" placard. Private university students in Dhaka protest VAT on tuition fees (12).jpg
Students holding a "No VAT on education" placard.

The 2015 Bangladesh student protests on "No VAT on Education" were protests by students of private universities in Bangladesh demanding the VAT imposed on higher education in private universities be eliminated. [1] [2] The present Finance Minister of the Bangladesh Awami League government first introduced a 10% VAT upon higher education in private universities in the draft of budget of 2015–16. [3] Following strong opposition, the VAT was reduced to 7.5%. [4] The imposed VAT was withdrawn by the finance division after a cabinet meeting on 14 September 2015.

Universities in Bangladesh

Universities in Bangladesh represent about 75 academic bodies out of a total of about 105 institutions of the conventional higher education institution (HEI) in Bangladesh. Segmented by management and financial structure, these include 34 public universities, 56 private universities, 2 international universities, 31 specialized colleges, and 2 special universities. There are specialized universities in both categories offering courses principally in technological studies, medical studies, business studies and Islamic studies. There are two private universities dedicated solely to female students. The number of universities is growing mostly in and around the capital city of Dhaka.

A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally, based on the increase in value of a product or service at each stage of production or distribution. VAT essentially compensates for the shared services and infrastructure provided in a certain locality by a state and funded by its taxpayers that were used in the elaboration of that product or service. Not all localities require VAT to be charged and goods and services for export may be exempted. VAT is usually implemented as a destination-based tax, where the tax rate is based on the location of the consumer and applied to the sales price. Confusingly, the terms VAT, GST, consumption tax and sales tax are sometimes used interchangeably. VAT raises about a fifth of total tax revenues both worldwide and among the members of the Organisation for Economic Co-operation and Development (OECD). As of 2018, 166 of the 193 countries with full UN membership employ a VAT, including all OECD members except the United States, which uses a sales tax system instead.

Contents

History

Previous government tried to impose similar VAT on private university tution fee in 2010, but had to revoke their decision as students protested strongly.

Protests

Private university students in Uttara,Dhaka protest VAT on tuition fees. Private university students in Dhaka protest VAT on tuition fees.jpg
Private university students in Uttara,Dhaka protest VAT on tuition fees.

On 22 June, law enforcement authorities foiled a procession of private university students heading for the finance ministry building to press home their demands. [4]

At the start of August 2015 the government announced they would not withdraw the VAT and that students must pay it. [5] The news sparked outrage among students. On 9 September, police opened fire on a protest by the students of East West University. [6] This caused outrage and immediate support for the cause by thousands of other students from different universities. [7] On 10 September, road blockades were carried out by students from different private universities to protest the VAT on tuition fees. [8] [9] The protest was sparked by controversial statements by the minister of finance, Abul Maal Abdul Muhith but he stood firm on the decision for the VAT to stay. [10] The government also issued a circular stating the VAT was only imposed on the private university authorities and the students need not pay. [11]

Abul Maal Abdul Muhith Bangladesh politician, economist

Abul Maal Abdul Muhith is an economist, diplomat, and a Bengali Language Movement veteran from Bangladesh. He was the country's Finance Minister since January 2009 till December 2018.

Incidents

There were two notable incident. First one happened at Dhanmondi 27, private universities students were attacked two times in a row [12] and the second one happened at Banani-Kakoli Square.[ when? ]

Result

On 14 September 2015 at a regular cabinet meeting directed by prime minister Sheikh Hasina, the Finance division decided to withdrew the VAT imposed on tuition fees. [13]

Sheikh Hasina Prime Minister of Bangladesh

Sheikh Hasina Wazed is a Bangladeshi politician serving as the 10th Prime Minister of Bangladesh, having held the office since January 2009. She is the longest serving prime minister in the history of Bangladesh.

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Southeast University (Bangladesh)

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References

  1. "#NO Vat on Education". The Daily Star.
  2. "Bangladesh students protest education tax". aljazeera.com.
  3. Anik, Syed Samiul Basher (2 August 2015). "NBR asks private varsities to pay VAT by August 15". Dhaka Tribune. Dhaka Tribune. Retrieved 12 September 2015.
  4. 1 2 "Anger as tax on private university education agreed – University World News". www.universityworldnews.com. Retrieved 12 September 2015.
  5. "NBR asks private varsities to pay VAT by August 15 – Dhaka Tribune". dhakatribune.com.
  6. "23 hurt as police foil anti-VAT EWU demo | Dhaka Tribune". www.dhakatribune.com. Retrieved 12 September 2015.
  7. "Thousands of Bangladeshi students protest university tax". Yahoo News India. 10 September 2015.
  8. "Private university students in Dhaka protest VAT on tuition fees". bdnews24.com.
  9. "Students' demo stops Dhaka". The Daily Star.
  10. "UNB – VAT to stay, but students won't have to pay: Muhith". unb.com.bd. Retrieved 12 September 2015.
  11. "Pvt varsity students begin strike". businessnews24bd.com.
  12. "Attack on student demo chanting 'Joy Bangla'". Prothom Alo . Retrieved 10 September 2015.
  13. Mamun, Shohel. "PM asks to withdraw education VAT". Dhaka Tribune . Retrieved 14 September 2015.