UP Govt hikes tax on private schools

The Uttar Pradesh government has imposed hefty taxes on private secondary schools in the state. The private schools affiliated with the CBSE and the ICSE will pay an annual tax of Rs 20,000 while the schools affiliated with the UP Board of High School and Intermediate Schools will pay between Rs 5,000 and Rs 20,000. The government has issued separate orders for the schools affiliated with the CBSE, ICSE and the UP Board.

The public schools run by minority communities and declared minority institutions have, however, been exempted from the tax. Under the order, aimed at mobilising resources for the exchequer, the government will charge additional fees for granting recognition and issuing no objection certificate (NoC) to schools seeking affiliation with the CBSE, the ICSE, and the UP Board.

The one-time fee to issue NoC to private schools seeking affiliation with the CBSE or ICSE has been hiked to Rs 25,000. The secondary schools teaching up to Class X, affiliated with the UP Board in semi-urban and rural areas will pay Rs 5,000 as tax, while those in urban areas will be charged Rs 10,000.

Private schools affiliated to UP Board and recognised for Class XII degree in rural areas will pay Rs 10,000 and those in urban areas will be charged Rs 20,000 as annual tax. The one-time fee for the schools teaching up to Class XII and seeking recognition from the UP Board has been doubled from present Rs 10,000 to Rs 20,000.

The one-time fee for granting recognition for opening faculties like commerce and science has also been revised from Rs 5,000 to Rs 10,000. The one-time fee for granting subject-wise recognition by the UP Board has been doubled from Rs 10,000 to Rs 20,000.

There are three categories of secondary schools imparting education up to Class XII in UP. These are government-owned, government-aided, and private institutions.

For opening a private school affiliated with the CBSE, ICSE, or with the UP Board, the promoter has to seek the NoC from the state government.

Earlier the NoC was issued free after an inspection of the school premises and the infrastructure by the secondary education department authorities. Every year around 1,100 and 40-50 schools are affiliated to the CBSE and ICSE, respectively.