Tion Ministry picketed by chools over VAT on tuition
us coming here builds the country, bringing in foreign currency, so doing this is actually hampering the development of Guyana, Colleen Millaneise, a Jamaican, first year medical student at the Texila University stated.
Millaneise was one of a group of perhaps more than a dozen foreign students from the university who stood on yesterday’s protest line.
Students of the Art Williams and Harry Wendt Aeronautical School were also in attendance, with their spokesperson Yograj Raghunauth raising concerns as to how the school, which he addressed as “one of the premier institutions within the entire Caribbean,” will be perceived by outsiders.
“Look at the image that you’re sending on the school and on Guyana… Our school is the only school that does aeronautical engineering within Guyana, many kids from the Caribbean and other countries come here to do aeronautical engineering, why tax that?” Raghunauth questioned, noting that on average, a student would have to pay nearly $10,000 a month in tax on the school fees.
“I don’t really think it’s a good idea for them to put VAT on education because the government does not have a public aeronautical engineering school. You want to tax education? Fine. Then get a public aeronautical engineering school for us because we don’t have a choice, we have to go to the school, we have to pay the tax.”
Meanwhile, Attorney Christopher Ram of Ram and McRae, expressed that contrary to what people might believe, University of Guyana students will also be at risk of paying the tax on their tuition. “The notion that VAT is not payable on University of Guyana school fees is extremely incorrect and it needs to be addressed,” he said.
“I am sympathetic to the cause of this group here that is protesting the VAT on education. I can understand the Minister of Finance’s need for revenue but I think there are many, many options open to him that would be far more productive, I think this is one of the least good ways to approach the raising of revenue. To tax education is absolutely historical, it has never happened, no service tax, no sort of expenditure tax on education, this is absolutely unprecedented.”
Prema Roopnarine, a committee member of the Guyana Private Schools United, related that correspondence was sent to the President, the Prime Minister, and the ministers of Finance and Education about three weeks ago, and the group was informed that a meeting would be scheduled. They are still awaiting that opportunity for discourse.
Private education became subject to VAT on February 1, following the removal of zero-rated items as a measure of the 2017 national budget.
Minister of Finance Winston Jordan said earlier this month that only private schools that earn more than $15 million a year and are registered for VAT will be expected to charge the tax, which is not being applied to education or educational supplies, but to tuition fees payable to private schools.