New Delhi, Jan 17 (PTI) Industry body Assocham has soughtenhanced outlay for education in the upcoming Budget andpitched for exempting higher education from the Goods andServices Tax.
In a letter to Finance Minister Arun Jaitley, the chamberargued that with external state regulation and risk ofagitation in the campus, higher educational institutions canneither absorb the new tax burden nor pass on the same viaincrease in fees.
"The Union Budget 2018 would be the first afterimposition of GST...A time has come for correcting thedistortions which were earlier brought in by repeatedamendments in the Service Tax for education sector.
"The last amendment brought in March 2017, denying taxrelief for listed services for higher educationalinstitutions, needs to be immediately withdrawn and end theuntenable discrimination against higher educationinstitutions," the chamber said in the letter.
Besides, tax exemption on construction, maintenance andrepair of buildings of educational institutions be granted, itsaid.
The chamber also sought increased Budget allocation foreducation sector.
It observed that the Kothari Commission and the recentSubramanian Committee (set up after the 2016 National Policyof Education), the expert recommendation and national view hadbeen for a minimum public outlay of 6 per cent of GDP foreducation sector.
The actual public expenditure over the years (even afterthe additional revenue garnered through levies of EducationCess Surcharges) for education had however been only around 4per cent, it said.
"There is a crying need, more so now for higher publicexpenditure on education at all levels – from schools touniversities, advanced research institutions," Assochamsuggested. PTI RSNANU.
This is unedited, unformatted feed from the Press Trust of India wire.