THE Alliance For Change (AFC) said it will make strident representation within the Coalition Government to ensure a repeal of VAT on private education in 2018.
The AFC in a release said it is cognisant and understands the difficult challenges faced by the APNU+AFC Coalition Government in raising revenue to meet the national capital and current expenditures for 2017,at a time when there are difficult economic situations throughout the hemisphere.
The party also said it recognises that the measure of instituting VAT on private education tuition has been unpopular and has created some unexpected challenges for some parents of children and adult students attending private educational institutions.
“The party has listened to those who have been affected by this measure and having thoroughly reviewed all perspectives and extensively deliberated on the matter the party accepts that: (1) education is a social good and, in ideal circumstances, tuition ought not to attract VAT; (2) that Budget 2017 has a significant deficit; (3) that the reduction of the VAT rate from 16 per cent to 14 per cent has resulted in a net revenue loss of GY$10B; (4) that unpopular tax measures are sometimes necessary to meet revenue targets; (5) in retrospect the measure ought to have benefitted from wider consultation.”
The AFC also said it is of the view that the status of private educational institutions requires review and updating where appropriate and calls on the Government to set up a task force to engage this matter in advance of the presentation of the Budget 2018 estimates.