Legislators revealed the new law which instructs non-governmental academic institutions to pay tax, which wasn’t the case before.
According to the parliamentarians, most of the private universities are owned by religious organizations like Catholics, Protestants and Muslims which only use the profits for own development, leaving out the country’s development.
“Most of the private academic institutions are owned by big religious organizations which use money to expand their personal projects rather than public interest, so there’s a need for the universities to pay for VAT, pays as you earn and also pay social security fund for their employees” Hon. Ntakuriryayo Damascene, the president of chamber of senators says.
He added that, even time will come when also government Universities will pay tax because elsewhere universities do engage in commercial business, where they can pay tax as they earn profits.
The government of Rwanda before was not taxing academic institutions and any academic related materials for the sake of promoting education in the country.
But the new law will demand private universities to pay taxes as other commercial business because they fetch a lot of money which is not shared by the public at large.
Private universities tend to ask for higher tuitions compared to government institutions, the private universities in Kigali include; ULK, Mt Kenya university, Adventist university, Rwanda Tourism university and UNILAK.