Thai PM opposes tutorial schools tax

Reposted for educational purposes only...
Bangkok Post: 12 Jan 2011
Tutorial schools escape tax A business tax on tutorial schools proposed by the National Anti-Corruption Commission has been rejected by the cabinet. The NACC yesterday urged the cabinet to ask the Finance Ministry to consider collecting a business operation tax from tutorial schools with many franchises and branches. It said about 4 billion baht could be earned from taxing the schools. The NACC also urged the Education Ministry to inspect and improve the safety of tutorial school buildings before allowing them to be used. Prime Minister Abhisit Vejjajiva yesterday said he disagreed with the taxation idea. Tutorial schools are regarded as business establishments but they provide education which is why the business tax has been waived. However, regulations have been imposed to control the fees that schools charge students. The important issue, Mr Abhisit said, was to find out if the schools overcharged with their fees. The schools' actual operating costs should not be difficult to determine. Teachers who in any way forced students at mainstream schools to buy tutorial courses would face swift punishment, he said. Many students attend tutorial classes on weekends or after school believing they will improve their chances of getting into university or other institutes of higher learning. Education Minister Chinnaworn Boonyakiat confirmed the cabinet yesterday had turned down the taxation proposal. However, the Education, Finance and Commerce ministries would inspect tutorial schools to see if they were profiteering from students and if so, take action against them. "Also, the educational system should be more standardised in order to reduce the popularity of tutorial schools," he said. Mr Chinnaworn said normal classroom studies should set the standard for education. According to the ministry, tutorial, religious, arts, sport and vocational schools are providers of education and are, therefore, exempted from tax under the 1999 National Education Act and the 2007 Private School Act. These schools come under the jurisdiction of the Office of the Private Education Commission responsible for looking into tutorial schools' expenditures and revenue. Mr Chinnaworn said the ministry would look into complaints that some teachers spent too much time teaching at tutorial schools after class and whether it was affecting their normal daytime work. Prasit Meetam, president of Debsirin School's parents association, said students should not attend tutorial schools because it was unlikely to improve their academic abilities. He said the tutorial schools should be taxed. http://www.bangkokpost.com/news/local/215603/tutorial-schools-escape-tax ----------------- PM opposes taxing tutorial schools Prime Minister Abhisit Vejjajiva said on Tuesday he disagrees to the National Anti-Corruption Commission's (NACC) proposal for a business tax to be levied on tutorial schools - which currently operate tax free. The proposal was made by the NACC following recent talks with the Revenue Department and the Office of the Private Education Commission. The NACC said tutorial schools were operating commercially and making a lot of money from students, which put a big burden on parents. Under the 1999 National Education Act and the 2007 Private School Act, non-formal schools including tutorial schools are exempt from tax on income because they provide education services without state funding. Mr Abhisit said he disagreed with the proposal, saying it was not a way of solving the problem. He said the Education Ministry had been assigned to look into spending of these schools and fix a ceiling on the tuition fee considered suitable for each of them. "The Education Ministry must see to it that they do not profiteer. Government officials or teachers who force students to attend turorial schools must face punishment," the prime minister said. Deputy government spokesman Marut Massayawanich said most of the cabinet members disagreed with the NACC proposal, saying that imposing the tax could be a breach of the Education Act. The prime minister also asked agencies to make sure the schools do not sell learning equipment such as text books, CDs and other items at excessive prices. Measures must be taken to make sure teachers properly follow their teaching plans and tutorial schools comply with the Building Control Act to ensure the safety for students, he said. http://www.bangkokpost.com/breakingnews/215537/pm-disagrees-to-levy-on-tutorial-schools