Education sector closes ranks on service tax burden:Jhankri critical of private institutions for giving fillip to brain drain

Lalitpur, November 7:

Students, student unions and private educational institutions came down heavily on the government for its bid to impose 5 per cent education cess. The existing education system also came under attack.

Speaking at an interaction organised by the PU chapter of the All Nepal National Free Students’ Union (ANNFSU), Basanta Chandra Marahathha, principal, ACME Engineering College, said the government had erred by trying to impose 5 per cent as service tax at a time when it had been levying 25 per cent tax on all institutions operating under the Company Act. “The additional tax is in violation of norms of taxation.”

The ACME principal claimed that the tax on private educational institutions adds up to 40 per cent.

“The Company Act governs the taxation of beer and cigarette factories. How can the government treat educational institutions on a par with these factories. How can subject excessive taxes on the institutes, which have been working to safeguard the right to education, one of the fundamental rights?” Marahathha questioned.

He said the government move would force private institutions to close.

Marahathha said the PU’s act of not issuing original certificates to its graduates was coming in the way of the graduates’ attempts to enrol at other universities. “In the absence of original certificates, other universities have not granted validations to their degrees.”

Bidur Chalise, principal, Stupa College, said the PU lacked an academic calendar. “The university lacks registrar and faculty deans and subject committees have not met for four years.”

“Interestingly, basic science faculties handle Health Science programmes,” said Chalise. “He accused the PU of granting affiliations to colleges without considering their infrastructure and capabilities. In course of three years, the number of PU-affiliated health science colleges has reached 20. “Entrance test has not yet been held for the summer intake. The colleges have been taking loans to pay their staff,” said he. “The government should either regulate universities or shut them.”

Dr Ram Kumar Adhikari of the Man Mohan Memorial Institute said the state cannot eliminate privatisation in education. “If the education sector is nationalised, the government will have to provide education services, which private institutions have been providing.”

Another representative of the institution institute lamented that they had requested the Medical Council to inspect their establishment a year ago, to no avail. “A year later, the council writes to us, saying that we cannot run the programme, which is already underway” said he.

Ram Kumari Jhankri, president, ANNFSU, said the union was setting up a parallel student body in the PU. “We will dig PU to its roots and correct it,” said she. She also blamed the private institutions for promoting brain drain by selling false hopes of study programmes in foreign universities. She also came down heavily on the CTEVT, accusing it of alluring students with academic degrees for training courses.

Bhupendra Jang Shahi, vice-president, Nepal Students’ Union, said the government’s move to collect 5 per cent service tax on education was a wrong one. “The government should provide grants to all the institutions so that the poor also have access to private institutions,” said he.

It may be noted that the government can collect Rs 50 million in service taxes from private

engineering institutions alone if the new taxation scheme comes into effect.