National Board of Revenue (NBR) has announced that the private university authorities would pay vat, not the students.
NBR made the announcement when the university students had been demonstrating for the second consecutive day at different points in the capital, creating huge traffic congestion.
The revenue authority clarified the imposition of vat in a press release signed by NBR public relation officer Syed A Mumen on Thursday.
According to the release, vat was not imposed to realise it from the students. Vat is included in existing tuition fees of the students. It is the obligation for the university authorities to pay, in no way the students will pay it, the release added.
In the current financial year, the government imposed 7.50 per cent value added tax on private universities, medical colleges and private engineering colleges.
On July 4, 2015, the national board of revenue issued an order in this regard.