No new VAT on any education service; MR misleading people - Harsha

Deputy Minister of Foreign Affairs Dr. Harsha de Silva today said that no new Value Added Tax (VAT) has been imposed on any education service and accused former President Mahinda Rajapaksa of attempting to mislead the people. 

“MR please don’t mislead the people. There is NO new VAT on any education service,” he wrote on his official Facebook page, replying to a statement issued by Rajapaksa.

He charged that the Kurunegala District MP has once again issued a statement “containing a number of untruths.”

“Knowing very well there is no imposition of new VAT on education services (removal of VAT exclusions) he attempts to mislead people by saying that fees from “nursery school to tertiary level as well as private tuition classes” will see an increase.” 

“Come on... be honest... let us debate based on the truth Mr Ex President,” he charged.

In a statement issued yesterday, Rajapaksa alleged that while benefitting from lower global commodity prices, the government is now trying to increase the VAT rate from 11% to 15% and widen its applicability to hitherto exempt sectors like telecommunications, health and education. 

“This will cause a 4% increase in the prices of goods on which VAT is already being charged and a sudden 15% increase in the costs of telephone and internet services, medical specialist channeling services, medical tests, private hospital care, private education from nursery school to tertiary level as well as private tuition classes,” he claimed.