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CTU-parents to challenge VAT on school material

CTU-parents to challenge VAT on school material

09 Jan 2024 | BY Sahan Tennekoon

The Ceylon Teachers’ Union (CTU) has warned the Government that they will take rigorous measures with the support of parents against the Government’s recent policy decision to impose the Value Added Tax (VAT) on stationary and other school materials. 

The Government recently raised VAT from 15% to 18% and reduced VAT exempted items from 138 to 97 from the VAT exempted goods list. Accordingly, many parties raised concerns over the substantial impact it creates on both consumers and businesses. As per the rules and regulations imposed by the Ministry of Finance and Economic Stabilisation, books, magazines, journals or periodicals (other than newspapers) for any period on or after 11 November 2016 under the harmonised commodity description and coding system numbers for the Customs purposes, and several other locally manufactured and imported school materials were subjected to VAT. 

Against this backdrop, speaking to The Daily Morning yesterday (8), the CTU General Secretary Joseph Stalin said that the Government is continuously neglecting the issues raised by parents and teachers regarding the particular VAT imposed on stationery and other school materials. He said that with this recent move, the prices of books, school bags, school shoes and other materials have increased almost by twice their initial price. Speaking further, he said that the CTU and other trade unions attached to the education sector will take rigourous actions unless the Government will change the VAT imposed on the aforementioned list of goods. He said that they hope to discuss the future actions with parents who are the most affected community due to this decision. He added that they have been receiving so many grievances from parents regarding the unaffordability of education for their children, adding that most of the students who are from underprivileged families have reportedly given up schooling within the past few years due to unaffordable expenses. 

However, speaking in Parliament last year (2023), the Education Minister and Leader of the House, attorney Dr. Susil Premajayantha said that a request has been made to exempt exercise books and stationery items from VAT. He said that a request was officially made with the Finance Ministry officials to take steps to exempt exercise books and stationery items from VAT.

Several attempts by The Daily Morning to contact the Secretary to the Education Ministry Wasantha Perera proved futile. 




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