Students going abroad have to pay 2% tax from now on

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The government has decided to levy a 2 percent education tax on students going abroad for studies. When announcing the budget for fiscal year 078/080, it was made public that students going abroad to study will be imposed a 2 percent education tax.

The tax fee should be charged to Students going abroad by banks or the financial institutions and provide it to the concerned tax office while providing such a foreign exchange facility to the students going to study abroad.

The Government has made the provision following Article 8(1) of section 2(1) of the Tax Policy. The banks or the financial institutions that provide the facility of foreign currency exchange must submit the tax fee and information to the revenue department within the 25th of the next month. According to Section 3(2), if any bank fails to submit the amount, they will be charged with a 15% annual interest rate as per law.

But according to the same article Section 4(1), a provision has been made to refund the education service fee if the student who has already paid the fee but has not been able to study abroad returns the foreign currency. For the Inland Revenue Department has set a procedure to refund the money through the concerned bank or financial institutions.

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