Voicing their grievance: Private institutions decry new taxation proposals
Dr Wahab informed the media that govt plans to levy a 5% advance tax on fee exceeding Rs200,000.
Dr Wahab informed the media that the government plans to levy a five per cent advance tax on fee exceeding Rs200,000. PHOTO: FILE
KARACHI:
An emergency press conference was held by chancellors and vice chancellors of private universities and institutions to demand the withdrawal of tax on education announced in the budget.
“The tax will lead to a hike to the tune of 25 to 30 per cent in the tuition fee,” said Muhammad Ali Jinnah University VC Prof. Dr Abdul Wahab. He said that besides the increase in fee, the tax proposals will reduce access to quality education and restrict growth of educational and research institutions.
“There are around 146 universities and institutes of higher education in both public and private sector,” said Ziauddin University VC Prof. Dr Pirzada Qasim Raza Siddiqui. “Around a third of a total of 529,000 students are enrolled in private institutions.”
Meanwhile, Indus University Chancellor Khalid Amin said that at least 14 of the 24 universities in Karachi will definitely close down as around 50 per cent of their income will be slashed as a consequence of this tax imposition.
Dr Wahab informed the media that the government plans to levy a five per cent advance tax on fee exceeding Rs200,000.
The move is set to affect all private medical universities and few other institutions, including Lahore University of Management Sciences and Institute of Business Administration. The tax has reportedly been imposed on these universities for charging exorbitant fee.
Dr Siddiqui said that it is unjustified to tax the medical institutions that were allowed by the Pakistan Medical and Dental Council (PMDC) to charge inside Rs600,000. “Only those that violate the PMDC directives should be punished as taxing everyone is not the solution.”
He said that the case of private universities was different from that of public universities, where fee accounts for barely four per cent of the total expenditure and government endowments cover over 90 per cent of finances. “Private universities have to generate their own resources as they do not receive any government funding.”
Calling tax on not-for-profit universities a sheer injustice, Dr Wahab said that it should be repealed as it will adversely affect their development projects. He also decried the five per cent levy on the commercial usage of 1,000 units of electricity and the withdrawal of the 75 per cent rebate enjoyed by the teachers, researchers and scholars, adding that the latter would result in brain drain of qualified teachers and researchers.
Published in The Express Tribune, June 20th, 2013.
An emergency press conference was held by chancellors and vice chancellors of private universities and institutions to demand the withdrawal of tax on education announced in the budget.
“The tax will lead to a hike to the tune of 25 to 30 per cent in the tuition fee,” said Muhammad Ali Jinnah University VC Prof. Dr Abdul Wahab. He said that besides the increase in fee, the tax proposals will reduce access to quality education and restrict growth of educational and research institutions.
“There are around 146 universities and institutes of higher education in both public and private sector,” said Ziauddin University VC Prof. Dr Pirzada Qasim Raza Siddiqui. “Around a third of a total of 529,000 students are enrolled in private institutions.”
Meanwhile, Indus University Chancellor Khalid Amin said that at least 14 of the 24 universities in Karachi will definitely close down as around 50 per cent of their income will be slashed as a consequence of this tax imposition.
Dr Wahab informed the media that the government plans to levy a five per cent advance tax on fee exceeding Rs200,000.
The move is set to affect all private medical universities and few other institutions, including Lahore University of Management Sciences and Institute of Business Administration. The tax has reportedly been imposed on these universities for charging exorbitant fee.
Dr Siddiqui said that it is unjustified to tax the medical institutions that were allowed by the Pakistan Medical and Dental Council (PMDC) to charge inside Rs600,000. “Only those that violate the PMDC directives should be punished as taxing everyone is not the solution.”
He said that the case of private universities was different from that of public universities, where fee accounts for barely four per cent of the total expenditure and government endowments cover over 90 per cent of finances. “Private universities have to generate their own resources as they do not receive any government funding.”
Calling tax on not-for-profit universities a sheer injustice, Dr Wahab said that it should be repealed as it will adversely affect their development projects. He also decried the five per cent levy on the commercial usage of 1,000 units of electricity and the withdrawal of the 75 per cent rebate enjoyed by the teachers, researchers and scholars, adding that the latter would result in brain drain of qualified teachers and researchers.
Published in The Express Tribune, June 20th, 2013.