Friday 28 May 2010

VAT imposition Vs Education sector

With the beginning of the new academic year from April, parents of children studying at private schools are already paying from Rs10 to Rs50 more on a textbook, depending on the syllabus. But they fear that with the imposition of value-added tax (VAT) in the new budget on the education sector, prices of education-related items will go skyrocketing.
Already uncomfortable with the surging inflation rate, parents now feel really perturbed over reports of VAT imposition on the education sector. Even the stakeholders in the education sector oppose the government’s move to levy VAT. In case of levy of a new tax, the stakeholders may not feel the pinch and ultimately parents will have to swallow the bitter pill of paying extra.
Publishers say the prices of books published by the Sindh Textbook Board have also risen by Rs1.5 per book for class ninth and tenth and 25 to 45 paisas per book from class one to eight in the last one year.
Like every year, paper makers enhance the rate of paper in the peak season in January for the new session and later they reduce the price in April after the book buying spree fades.
However, there was some stability in the prices of stationery items as claimed by manufacturers. Parents also bear an increase in the monthly fees and annual charges by private schools, uniform and shoe prices, school van charges, etc.

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