Luncheon warns government over charging vat on private school fees

Dr. Luncheon noted that a lot of the people who are insisting on VAT on private school fees, may also have children or relatives in the private education setting, but are not speaking out for political reasons.

Luncheon warns government over charging vat on private school fees

PPP Executive Member and former Cabinet Secretary Dr. Roger Luncheon is warning the administration that it may not be ready to “stomach” a large scale protest over its decision to add the Value Added Tax to private school fees. 

At least one private and its students have been very outspoken against the tax being added to the school fees.

Speaking at a PPP press conference on Monday morning, Dr. Luncheon said the government should not mess around with education. 

He added that his feelings are, “closer to one’s heart, our children and their education, don’t mess with them”.

Dr. Luncheon noted that a lot of the people who are insisting on VAT on private school fees, may also have children or relatives in the private education setting, but are not speaking out for political reasons. 

 “The masses of Guyanese, who resort to private education, this revocation of the zero-rating of private education regime put in place by the People’s Progressive Party is not going to go down easy” Dr. Luncheon added.

Private education in Guyana blossomed under the PPP government as the public education system deteriorated. Many of the private schools, according to Ministry of Finance officials, have never been properly registered as businesses and therefore have not been paying their share of taxes.  Additionally, some of them are registered as non-governmental organisations and religious schools, allowing them to pay little or no taxes, even as they charge hefty school fees.

 Minister of Finance, Winston Jordan in a letter to the press explained that  with the new amendments, VAT is to be charged on the tuition fees paid to any private educational institution, while public education remains free.

He said there are “fifty-four (54) private education institutions registered with the Guyana Revenue Authority, few of whom were tax compliant, including submission of yearly income and corporate tax returns.”

Minister Jordan has suggested that the private schools should absorb the value added tax so that it would not be passed on to parents. 

The School of the Nations has launched a petition against the 14% vat on private school fees. The Director of the School has written to the government on the issue and is hoping that the tax will be removed.

Last week, Minister of State Joe Harmon, said the issue had been discussed at cabinet and the Finance Minister will be expected to submit a report.

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