VAT on education
– after weeks of widespread condemnation
The concerns and protests against the 14 per cent Value Added Tax (VAT) on private education tuition fees have prompted a concessionary reaction from the Government.
Following a Cabinet meeting on Tuesday, a decision was taken for a team of Government Ministers to meet with parents and operators of private schools on Friday, April 7, 2017 at the National Cultural Centre (NCC).
According to a release, the Government is inviting all relevant stakeholders to attend the consultation to ensure a frank and open discussion.
Education Minister, Dr Rupert Roopnaraine also gave a commitment that “we are prepared to hear what the concerns are and see how best we can address them”.
Since its application, Government’s 14 per cent tax on private education has received widespread condemnation. There have been protests, the venues for which have alternated between the Guyana Revenue Authority (GRA) and the Education Ministry.
A large group of protesters on Wednesday last picketed the Education Ministry, calling for the removal of the tax measure.
“No VAT on education, education should be free!” That was the song being sung by the protesters who came out in large numbers to picket in front of the Ministry.
The protesters who came from various private educational institutions, along with parents, all reiterated yet again their stance that VAT on education must be removed.
Attorney Christopher Ram, who was also on the protest line, said Guyanese have never had such an imposition on expenditure for education. He said the VAT on education was not understandable.
“It has never been the case in Guyana; in 1929, Income Tax was introduced in Guyana and we have never had a tax on expenditure for education in this country, never in the country’s history and so I just cannot understand it. This is bad and it should be removed.”
He added that although the matter was one that would be hard to fight in court, it should be looked at by creative lawyers.
Another protester, Cheteram Ramdihal, said it was unfair for any policy implemented to be a burden.
“I think that it is very unfair to us as parents, for the Minister, and the Government by extension, to come up with a policy where it falls as a burden for the parents, for private schools failing to pay their taxes. I would hope that the Minister revises his policy and comes up with a policy to ensure that the private school honours their commitment and not to come with a policy where the parents are being burdened,” the man said.
Other protesters also voiced their dissatisfaction; one protester who is an aeronautical engineer said Government did not have an aeronautical school nor could the university sustain one so why should a private one be taxed.
However, a few who opposed the protest and were in support of the tax on education also voiced their opinions, stating that “the VAT is not a problem”.