Taxing tutorial schools only fair, says Sansern
Jeerapong Prasertponkrung
The Nation

BANGKOK: -- The government's decision to tax tutorial schools is aimed at boosting taxation fairness as research shows tutorial schools' profit rate is as high as 40 per cent.

"Our main focus is not about increasing tax revenue. It's about fairness," deputy government spokesman Maj-General Sansern Kaewkamnerd said yesterday.

Tutorial schools have long enjoyed tax exemption as they are supposed to play a role in boosting educational opportunities among the underprivileged.

Sansern said the National Anti-Corruption Commission (NACC) had cited research findings in recommending that the government tax tutorial schools.

"It is clear that most tutorial schools are now profit-oriented," he said.

He pointed out that famous cram schools were charging higher fees based on their popularity, and reserving their rights over |content of books/CDs they produce.

According to Sansern, the government expects to earn Bt1.2 billion in tax revenue from tutorial schools each year.

Thousands of cram schools

There are now 2,379 registered tutorial schools in the country, with a total of 535,695 students. Of these schools, 549 are located in Bangkok and the rest are upcountry.

Of all students seeking the cram schools' services, 209,350 are in the capital and the rest are in provinces.

The latest government decision, however, has caused uproar among tutorial-school operators.

They have said that if they are taxed, they will increase their course fees.

Sansern said the government had assigned the Education Ministry to improve educational quality, something that could discourage students wishing to take extra courses at cram schools.

Source: http://www.nationmultimedia.com/national/Taxing-tutorial-schools-only-fair-says-Sansern-30256287.html

-- The Nation 2015-03-19

That is the spirit!!

Tax education, everything and anyone else are exempted!!

Makes sense...................................??

Fair is Fair .

"the government had assigned the Education Ministry to improve educational quality, something that could discourage students wishing to take extra courses at cram schools."

Market demand is what drives businesses.

BUT

Thailand is not at the point NOW of having improved educational quality that would decrease the need for tutorial schools. So why make any moves now against tutorial schools that can drive them out of business? These schools provide a necessary service to the nation's educational system and do so only because of a profit motive. If these schools close down, does that improve educational quality? NO. Will the government have a Plan B to make up the loss of tutorial schools? NO.

To discourage students from attending tutorial schools now, the Education Ministry would actually have to plan to DECREASE the educational quality. Then there would be no reason for students to cram and take courses at tutorial schools. They would be guaranteed to pass. But how dumb is that?

"the government had assigned the Education Ministry to improve educational quality, something that could discourage students wishing to take extra courses at cram schools."

Market demand is what drives businesses.

BUT

Thailand is not at the point NOW of having improved educational quality that would decrease the need for tutorial schools. So why make any moves now against tutorial schools that can drive them out of business? These schools provide a necessary service to the nation's educational system and do so only because of a profit motive. If these schools close down, does that improve educational quality? NO. Will the government have a Plan B to make up the loss of tutorial schools? NO.

To discourage students from attending tutorial schools now, the Education Ministry would actually have to plan to DECREASE the educational quality. Then there would be no reason for students to cram and take courses at tutorial schools. They would be guaranteed to pass. But how dumb is that?

Market demand may drive the business, but with proper examination of the value of certificates while passing potential new employees through the acceptance procedure (and a bit of transparency thrown in), lots of these 'cram' school may soon be out of business. Now such processing seems a bit more business like than a suggestion of lowering standards.

BTW "According to Sansern, the government expects to earn Bt1.2 billion in tax revenue from tutorial schools each year."

Assuming these tutorial schools are not taxed out of existence (a choice you might like though), that's a real lot of money.