MAE’S Private School, one of the country’s leading private institutions, has signalled its intention to protest the government-imposed 14 per cent Value Added Tax (VAT) on private tuition.

At a Parent-Teacher Association (PTA) meeting held on Thursday at the institution’s Subryanville location, it was said that though VAT on private tuition has been implemented since February, the protest will serve as a means of fighting the decision.

It is hoped that by protesting, the Government will be forced to reverse its decision to implement VAT on private education. The protest is planned for March 23 between noon and 13:00hrs between the Ministry of Finance and the Prime Minister, Moses Nagamootoo’s residence on Main Street, Georgetown.

But even as the school has indicated its intention to protest the imposition of VAT on education, it is currently finalising arrangements with other private institutions that are also against the imposition of VAT on private schooling.

Another meeting is scheduled for next Tuesday and it is hoped that all other private schools get will get on board to ensure that the 14 per cent VAT is reversed.

Meanwhile, School of the Nations, another private institution had launched a petition against the imposition of VAT on private education and received significant support from many.

The school’s director, Brian O’Toole, during an interview with the Guyana Chronicle recently, said he believes that the move by the government to impose VAT on private education is an unjust one, as many students are finding it difficult to pay the existing tuition fees.

O’Toole argues that with the imposition of VAT, many students attending private institutions may be forced to withdraw because they cannot afford to pay the increase.

“There are more than 2,300 students from preschool to Sixth Form and others pursuing international diplomas, degrees and MBAs from centres of excellence such as the University of Cambridge, University of London, ABE and the Australian Institute of Business.

“Some of those students arrived at Nations in the latest RAV4s or BMWs, but others arrive on foot. Some represent some of the most affluent sectors of the Guyanese society,” said O’Toole who called on the administration to find alternative ways to garner revenue.

But, Finance Minister, Winston Jordan, told reporters that many of the private institutions operating within the country are evading the tax system and noted that very few are tax-compliant.

The Finance Minister said though parents will be forced to pay the additional 14 per cent VAT on their children’s tuition, it is not his administration’s intention to implement measures that will prove burdensome on citizens.

He noted however, that the time has come for all tax evaders to pay up and reminded that many of the schools operating in the country are not registered with the Guyana Revenue Authority (GRA) while others are not submitting their returns.

The Finance Minister believes that private institutions can well absorb the 14 per cent tax which has to be paid by students and suggested that there be some level of compromise for those parents who really cannot afford to pay the extra money.

Jordan said too that “VAT is not a cure for social ills; it is first and foremost a fiscal tool. I said we are aiming to reduce VAT, but in doing so we will seek to broaden the base as wide as possible. There is no VAT on public education; it remains a choice of the parent. Government is not making that choice for them.”

The Guyana Chronicle understands that many of the private schools, 33 of which operate within Georgetown, are unrecognised. According to information received, of the 33 schools in Georgetown, 21 are unrecognised while 12 are.