No reason for higher learning institutions to raise fees

PETALING JAYA: The Education Ministry said there is no reason for institutions of higher learning – private or public – to increase tuition fees when the Goods and Services Tax (GST) is implemented tomorrow.
This is because universities and colleges are allowed to reclaim the input tax from the government for purchases made on GST-imposed items or services for the purpose of education service.
A ministry spokesman told theSun under the GST (Exempt Supply) Order 2014, which is available online, education services are generally GST-exempted.
"This means that all higher education programmes in Malaysia and those registered with the Malaysian Qualifications Agency, from diploma to PhD level, are exempted from GST.
"This includes course materials, field trips, provision of food and accommodation, transport for students, and administrative services directly related to the supply of education and even the supply of cleaning and maintenance, electricity, gas, and air conditioning."
He said any increase in fees must be approved by the ministry as it regulates the amount that learning institutions can charge for the programmes offered.
On the penalty for institutions found imposing GST on tuition fees, he said, action will be taken by the Domestic Trade, Cooperatives and Consumerism Ministry enforcement division.
Meanwhile, Taylor's College chief operating officer Stella Lau and several other private institutions,when contacted, assured that they will abide by the Education Ministry's directive.