Private education and VAT

SINCE the announcement of VAT on private tuition fees, this matter has been gaining much public attention and it is encouraging that the Government has indicated that the measure will come under review.
The decision to review came amid much public criticism and protests from a wide cross-section of society and undoubtedly shows that the administration is attuned to the voices of the people. It is not clear however, what will be the outcome of the review which will be known by the next budget, but the dissenting voices have been calling for the VAT on private tuition not to be lowered but to be repealed.
And quite interestingly, the vast majority of private schools clamouring for removal of the tax are not tax-compliant, while the Government has defended the tax, contending that it is vital revenue for improved services provided by the State. Some would ask what locus standi schools which have not been paying their taxes to the Guyana Revenue Authority (GRA) have to criticise the Government for taxing private education.
Especially when the revenue is needed to enhance the lives of the citizenry, without any prompting, and not trying to be even, all private schools breaching the tax laws must be made to honour their obligations to the State, and stern action should be taken against those found wanting in quality education delivery.
Many have also asked the question as to whether the tax on private tuition is absolutely necessary, given the challenges of the public, primary and secondary school system. The public school system is far from perfect, but this APNU+AFC government has shown that it is committed to fixing it. A Commission of Inquiry into the school system which was launched several months ago has been completed and the findings will be presented today. However, there are problems, some more telling at the primary school level. Of the 13,000 who sit the National Grade Six Assessment (NGSA) every year, less than 1000 are placed at the senior secondary schools since that is the amount of space available.
Many candidates who fail to master the basics in literacy and numeracy are exported into the secondary school system; and because there is hardly any remedial programme tailored for them, for the vast majority, it is a sail through. There is little wonder why even though English is not a second language in Guyana, our students continue to perform poorly in the subject at the Caribbean Secondary Education Certificate (CSEC) examinations.
For Mathematics, the results are also less than flattering and not worthy of remembering. Here is where private schools come in and have enjoyed noteworthy successes over the years in helping students to reach their full potential. On this score, we recognise the laudable achievements of private schools such as: the Success Elementary School in Georgetown and the Saraswati Vidya Niketan Secondary School on the West Coast of Demerara. These are not the only private schools which have been doing excellent work, there are several others, but over the years they have distinguished themselves in helping students who would have otherwise slipped through the public school system. VAT on private tuition has seen many demonstrations and also some private schools raising their tuition fees, putting additional strain on parents, many of whom are not well off.
Although interested parties are disappointed that a decision was not made immediately to remove the tax measure, both the President and Prime Minister have promised that a review will be done for the next budget cycle. Listening, an essential feature of a vibrant democracy is now gaining momentum and hopefully will become fairly routine in enhanced governance procedures. A high level of citizen involvement in the democratic process and influence on political decision-making will be essential for maintaining a vibrant democracy, even as the rule of law is impartially maintained. Avenues must also exist for discussions on policies and processes via free and plural media. We should celebrate the recent protests as a sign that our democracy is getting stronger and recovering from an earlier era when a huge underground economy flourished and the rule of law was compromised by untouchable drug barons, death squads and massacres.

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