Private Education Hub opposes taxes on private schools

Private Education Hub (PEH), a coalition of private schools in Khyber Pakhtunkhwa, has strongly objected to the recent imposition of fixed taxes on private educational institutions by the provincial government. The taxes, ranging from Rs.50,000 to Rs.2,50,000 per institute, have been met with resistance from PEH, who argue that such levies could have negative consequences on the education sector.

PEH highlighted the crucial role that private schools play in improving literacy rates by educating millions of children. They emphasized that private schools make significant contributions to education through their investments. However, they criticized the government for what they perceive as policies that hinder educational progress.

The Secretary General of PEH pointed out the alarming statistic that 3.6 million children in Khyber Pakhtunkhwa are currently out of school, with this number on the rise. While public schools charge Rs.5000 for primary school and Rs.7500 in the public sector, private schools offer quality education at affordable rates. PEH urged the government to enact laws that support the growth of private schools instead of burdening them with heavy taxes that could lead to closures.

Aside from the new tax, private schools in KP also face other financial obligations to the provincial government, including registration renewals, income tax, professional tax, and contributions to social security and old-age benefit institutes. The Secretary General noted that 90% of private schools charge less than Rs.3000 per month, barely enough to cover their expenses. The introduction of the new tax poses a threat to the sustainability of these institutions.

PEH has called on Chief Minister Ali Amin Gandapur to reconsider the tax implementation, citing concerns for parents, students, and schools. They have warned of potential protests and school closures if their grievances are not addressed promptly.

The debate over taxing private educational institutions in Khyber Pakhtunkhwa continues to escalate, with PEH advocating for policies that support the growth and accessibility of private schools. The outcome of this dispute will have significant implications for the education landscape in the region, impacting students, parents, and school operators alike.