Georgetown: The Government of Guyana has committed that Cabinet will review the Value Added Tax on private education tuition at its next meeting on Tuesday, April 11th.
The announcement was made by Prime Minister Moses Nagamootoo at a meeting with owners and operators of private educational institutions along with students, parents and other stakeholders. The meeting was held at the National Cultural Centre.
Minister of Education Dr. Rupert Roopnarine, reiterated comments he had previously made that the matter remains under Cabinet consideration while Minister of Public Telecommunications Catherine Hughes, who moderated the extensive session, also indicated that Cabinet had mandated that the meeting take place and that it will fully consider the views expressed by all the stakeholders.
Dr. Roopnarine outlined that government was committed to investing heavily in education with a 2017 budget allocation of $43.1BILLION or 17.2% of the national budget. He noted that the education sector received the largest single budget allocation for 2017 and outlined that significant sums were being expended for the school feeding and school uniform programmes along with construction, expansion and renovation of schools, dormitories and other buildings.
Dr. Roopnarine also acknowledged that the private education sector, provides support to the public education sector but that the large number of unregistered private schools needs to be addressed and regularized.
Prime Minister Nagamootoo also urged that all private schools to be registered with the Ministry of Education and that they make efforts to become accountable and compliant with the laws, regulations and standards.
Prime Minister Nagamootoo, in a detailed presentation, after listening to dozens of educators, students and parents told the large audience at the National Cultural Centre that the ministerial team will take the concerns and views expressed to Cabinet on Tuesday for consideration and an announcement will be made subsequently.
Prime Minister Nagamootoo specified that while he can give clear assurance that the issue will be reconsidered for the 2018 budget, he could not make a unilateral decision, outside of Cabinet, for the VAT to be rescinded as was called for by several of the educators, parents and students at the meeting.
Prime Minister Nagamootoo explained that with regard to the 2017 application of VAT to private tuition, given that Budget 2017 has already been presented, debated and passed, that issue would have to be deliberated on by the full Cabinet which will be done on Tuesday of next week.
He further explained the measure was not introduced in any way to specifically place a burden on parents and students but that with the reduction of the VAT rate from 16% to 14% it resulted in a reduction of some $10BILLION in revenue and that the government had to examine ways in which to make up for this shortfall. The Prime Minister acknowledged that the VAT on private education tuition was an unpopular tax which has been criticized and which resulted in a petition and protest and that as a caring government, it was duty bound to listen and review and committed that this will be done.
Among those who expressed strong views on the matter were Dr. Brian O’Toole of Nations University, educator Dr. Melissa Ifill and Mr. Christopher Ram, attorney-at-law and accountant.
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