The Tribune

By RICARDO WELLS

DNA leader Branville McCartney yesterday called the intended value added tax charges on the College of the Bahamas’ non-degree related fees “an affront” and demanded the government “reconsider” the taxation.

Mr McCartney said he was speaking for “scores of hard working students who, in the face of a $3.2m budget cut, are already being required to shoulder an increased financial burden through the payment of additional school service fees.”

He added that the process of obtaining a college degree is becoming more difficult despite the Progressive Liberal Party’s election promise to double the investment in education.

The DNA leader insisted that the PLP’s vow of doubling education investment was nothing more than an “empty” pledge.

“While on the campaign trail the PLP, then in opposition, promised to double the investment in education at all levels. While in government however, they have done the exact opposite, cutting critical funding to the country’s leading tertiary education institution, even as it prepares to advance toward university status,” Mr McCartney said.

He added: “The answers to the myriad of problems facing the country can be found first in the reform of our education system. Any government worth its salt would act swiftly to ensure that all its citizens, irrespective of their socio-economic status have access to quality education. The future of our country depends on it.”

He continued: “For the thousands of students currently enrolled at COB, and the thousands of future high school graduates this country will produce in June of next year, the taxation of non-degree courses is yet another obstacle which could prevent striving young people from receiving the kind of education that would make them real contributors to this society.”

COB recently released a statement to inform students that effective January 1, 2015, VAT will be applied to tuition fees related to non-degree programmes, courses and seminars, all non-tuition fees, and all other goods and services offered by the institution.

According to VAT legislation, education services, including tuition-funded courses at schools and programmes leading to graduate and undergraduate degrees will be exempt from the tax.

The statement released by COB read: “Accordingly, the college administration is seeking to secure a deferral of the implementation of VAT on tertiary instruction and associated fees to Fall 2015.”

The statement went on to reveal that COB was unsuccessful in that attempt and as a result, would implement VAT on bills for this upcoming Spring semester.

COB also said the 7.5 per cent VAT will apply to the following: tuition and non-tuition fees for preparatory courses, professional and personal development courses, and any other continuing education courses and seminars offered through the Centre for Continuing Education and Extension Services; non-tuition fees related to degree programmes; all other products and services offered for sale by the institution.

Mr McCartney said the importance of education to our young and developing democracy “cannot be overstated.” “Not only does a sound education give our citizens the critical skills and tools needed to improve their quality of life, it also helps create and sustain economic growth, encourages transparency, good governance stability and fights corruption.

“In light of the many social ills currently facing our beautiful country, the Democratic National Alliance calls on the government to reconsider the taxation of these college courses and begin the process of removing all potential barriers to receiving a quality education in this country.”

It is expected that COB will transition into a university by July 2015.

The Christie administration on October 6 moved a $16.1m resolution to cover the first phase of the College of the Bahamas’ transition to university status. That $16.1m is expected to cover 70 per cent of the $23.2m in estimated costs, the remanding 30 per cent will be covered by the government.

COB earned a combined $20m in revenue through tuition, fees, sales and services according to the Summary Budget Analysis of the 2014 fiscal year and has approximately 5,300 students.