Dhaka: Assuring that no VAT has been imposed on the tuition fees of students, private university owners on Friday urged the students to withdraw their movement and return to the classes.

Talking to reporters at a press briefing in the city’s Gulshan Club, Private University Association president Sheikh Kabir Hossain said, ‘No VAT has been imposed on the students. Now the VAT has been imposed on the universities. I urge the students that they withdraw their movement and go back to the classes soon.’

However, Sheikh Kabir Hossain also criticised the National Board of Revenue (NBR) for their statement that said the VAT will be borne by the university authorities.

Noting that private universities are governed under trusts and VAT cannot be imposed on any trust, he urged the government to review the decision of imposing VAT on the income of private universities.

Earlier, on Thursday, students of various private universities staged demonstrations at different parts of the city on Thursday protesting the imposition of VAT on the tuition fees and police action on East West University students, bringing the entire city traffic to a standstill.

The agitation programme, joined by students from different private universities, caused unprecedented traffic congestion in different city areas as the angry students blocked many city roads since the morning.

The traffic situation slightly improved in the evening as students withdrew their blockade in Mohakhali and Rampura areas following a clarification by National Board of Revenue (NBR) that it is the private university authorities, not the students, who will pay the VAT.

Earlier on 4 July, the NBR issued a notification imposing 7.5 percent VAT (Valued added tax) on the tuition fees of the private universities and medical colleges.

According to statistics provided by the University Grants Commission (UGC), there are currently 84 private universities in the country with 328,736 students.