VAT increase dealing a massive blow to education, warns CTU

The increase in Value Added Tax (VAT) which came into effect from the new year has posed a grave danger of crippling the nation’s education since everything from the cost of notebooks to school transportation has been affected, warns Sri Lanka’s leading teachers union.

Speaking to journalists in Colombo -Ceylon Teachers Union (CTU) General Secretary Joseph Stalin said despite a request from all that the tax not be levied on education, VAT has been levied on the sector in utter disregard to the request to spare the education sector from it.

“Now the school van operators have clearly announced they will be hiking the rates when the schools begin in February”

He also questioned how people will cope up if all VAT is levied on all school items. It will affect livelihood he emphasized.

“Everything from the cooking gas has been levied at 18%. Children’s notebooks are taxed 18%, and school bags and shoes are taxed. Transport cost has been hiked. So, how do people live”?

Joseph Stalin further questioned if the government intended to destroy the education of rural children.

“Does the government want to run the education sector or at a time when the education system in the country is in an unfavourable situation, to destroy the education of vulnerable children”?

The VAT has been increased to 18% from 15% from the first of January this year.

And, the Finance Ministry has announced this rate of tax will apply to 97 products that haven’t been taxed so far.