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Private universities tax is only on profit margins - Okudzeto Ablakwa
From: Ghana|Myjoyonline|Edwin Appiah          Published On: July 23, 2013, 13:57 GMT
 
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Audio Attachment: Listen to Kwesi Yankah and Okudzeto Ablakwa
 


     
 




Private universities tax is only on profit margins - Okudzeto Ablakwa

Okudzeto Ablakwa


Deputy Education Minister in charge of Tertiary Education, Samuel Okudzeto Ablakwa has dismissed concerns expressed by authorities in private universities, over the removal their tax exempt status.

According to Mr. Okudzeto Ablakwa all that government seeks to do, is to tax profit declared by boards of private universities.

“We are not introducing a new tax…it is not an additional tax”, he insisted.

Chairman of the Conference of Heads of Private Universities in Ghana, Professor Kwesi Yankah speaking to Joy News called it a “crucial time” for government to withdraw their tax exempt status at a time when huge overflow of students unable to gain admission in public universities, would need to be absorbed by private universities.

He said, private universities have been in existence for 10 to 20 years and should be considered as an infant industry.

The CHPUG considers the withdrawal of the tax exempt status as a sad development in the history of private education. It said the development will compel its members to pass on the cost to students.

But in response, the deputy minister said government was not introducing any new tax. For a private university to pass on the tax on students was baseless because “there is absolutely nothing to pass on”.

“we are hoping that they don’t really mean what they are saying”, he said on the Super Morning Show on Joy FM, Tuesday.

He also revealed that government also plans to increase funding allocation to the Students' Loan Trust by 2014, to cushion students burdened by high school fees.


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