Business News of Wednesday, 25 January 2017
Former President of the Private University Students Association of Ghana (PUSAG), Benjamin Panlogo-Logodam, has urged government to withdraw the 25 percent tax imposed on private univesities.
He wants the old regime where private universities did not pay tax to be brought back, saying a return to the tax-free system would help the institutions to grow.
Following the amendment of the Internal Revenue Act (592) in 2013, private universities in the country were asked to pay tax to government as captured in Section 10(1d).
The Act exempts “income accruing to or derived by an exempt organisation other than income from business” such as “religious, charitable or educational institution of a public character’.
But the student leader in a statement said that although profit making institutions should be mandated to pay taxes the private institutions have to be exempted.
He noted that the taxation of private universities per the amended Internal Revenue Act undermines the interest of university education and Ghana’s development planning.
Mr Panlogo-Logodam urged government to endeavour to meet periodically with the Council of Independent Universities to receive first-hand information on challenges faced by private educational institutions.
“All private universities that have been accredited for 10 years or more, that have their own campuses and meet the requirements of a charter, must be granted University Charter as soon as possible, without lengthy bureaucratic processes,” the former PUSAG President said.
He also called for the allocation of 30 percent of GETFUND to private universities since they enrol over 30 percent of tertiary education students in Ghana.
“This is the right time for Government to consider a Private Education Trust Fund (PETFUND) for private educational institutions,” he added.