Tutorial schools asked not to raise fees

[webfact]

Tutorial schools asked not to raise fees

BANGKOK: -- The Office of the Private Education Commission (OPED) is asking all tutorial schools not to raise fees for this year as the Revenue Department is still undecided in tax rates that it will collect from them.

The request was reached at a meeting last week of the commission chaired by the education minister to deliberate the tutorial fees.

OPED secretary general Bundit Sribhudtangura said the meeting agreed to officially seek cooperation from operators of all tutorial schools to suspend any plan to raise tutorial fees for the 2015 academic year as the Revenue Department is still inconclusive on the tax rates to be collected from tutorial schools so that it would not add burden to parents.

He said if no cooperation is given after the official request is made, then the OPED will consider the fee increase based on facts which will take into consideration its profit after cost and management expenses which allows no more than 20%, and which the schools must report to the OPED.

Besides if there are changes in the pattern of teaching, such as teaching at classes by teachers, or by video conferencing to lower operation cost, tutorial schools are also required to report to OPED otherwise they will be considered violating the law.

He said patents who felt tutorial fees were too high, they could report to the OPED for investigation.

Meanwhile the Kasikorn Bank’s Research Centre said the cabinet decision to tax tutorial schools will increase their operation costs although it ensured fair tutorial fees for parents and students.

But there is high possibility that the higher tax will be passed on to students through fee increases.

It said tutorial business for 2015 was forecasted to value over eight billion baht or 6.8% growth from last year’s 7.67 billion baht.

However due to the economic situation, parents still will send their children to tutorial schools but adjust their behaviours in sending them to schools.

Source: http://englishnews.thaipbs.or.th/tutorial-schools-asked-not-to-raise-fees


-- Thai PBS 2015-03-23

[Your Thainess]

So, basically they announced a new policy without making a plan first?

Sounds pretty typical.

"He said patents who felt tutorial fees were too high, they could report to the OPED for investigation."

Uh, what?

[h90]

So, basically they announced a new policy without making a plan first?

Sounds pretty typical.

"He said patents who felt tutorial fees were too high, they could report to the OPED for investigation."

Uh, what?

I feel the beer price is too high. I want to report that to the OPED for investigation.....

I think everyone has something to report.....

[irwinfc]

"seek their cooperation", "ask", "request"... who regulates these tutor schools, anyway? not this OPED, it seems. if only the coercion between these tutor schools and so-called "competitive schools" are curbed then we need not worry about these stupid extra classes.

deficient school curricula + demanding entrance examinations = thriving tutor schools = family savings down = less time for kids to BE kids

[maidee]

same same as that famous land & house tax bill

mhhhhhh... is there a pattern ?

is the governement a bit ADD / ADHD ?

talking before thinking

[Searat7]

If they fixed the education system in this country the need for tutorial schools would be less. Next to corruption I think the education system is Thailand's biggest problem.

[greenchair]

Shameful the government will tax tutorials for being a business. These learning centres are tasked with teaching the kids math, science, and English because the billion baht education machines are failing to teach them.

Tutorial.

100 students = 2,000 per month.

200,000 per month.

- air, teachers, reception and expenses, about 100,000 per month. Guesstimate

Profit 1 million per year.

Private thai school.

1 student 50,000 per year.

40 kids per class.

2 million per year.

Split class. 4 million.

K1 to grade 6

9 × 4 million

36 million per year.

Expenses, salary per class

360,000 × 2 = 720,000 ×9

6 million 500,000 per year.

Profit Around 30 million per year. (Very low guestimate )All tax free.

The government should be supporting tutorial centers,who in fact are the backbone of education in Thailand. They pay high salaries for top quality teachers. While producing high standard test results.

Instead of supporting private schools that provide substandard teachers,failing test results and continue to rob the parents.

The private schools continue to put profits over quality.

While the tutorials continue to put quality over profits.

The government should reward educational institutions that can show passing students.

(Tutorial centers )

And tax institutions that are showing failing students.

(Private schools )

8 billion a year industry is a drop in the ocean compared to the trillion baht industry of private schools.

Let's get real here Prayut.

[LuckyLew]

If they are set up in such a way as to turn a profit they should in fact be taxed

[NickJ]

Once again....you only pay taxes on profit. And there are more legal loopholes here than you would ever need.

[greenchair]

If they are set up in such a way as to turn a profit they should in fact be taxed

My thoughts exactly.

Which is why the trillion baht industry of private schools should be paying tax on their trillion baht industry.

Hmm, how many government officials own private schools.

These schools have been robbing the Thai parents for years.

Choose any private school and do the math.

The numbers in profits are almost beyond belief.

[greenchair]

Like the land tax.

Another case of going after the small fish, while providing plenty of loopholes for the big fish.

This country is slowly going into depth. When in fact, taxing

The rich would enable thailand to be financially stable.

Tax the trillion baht private schools.

Not the million baht tutorials.

Tax the trillion baht business and land owners.

Not the million baht home owners.

Tax the resort and business land encroaches.

Not the little villagers that need a small piece to farm and live.

They should stop messing around with the little people and go to where the real money/taxes are.

??????????????

[casualbiker]

Like the land tax.

Another case of going after the small fish, while providing plenty of loopholes for the big fish.

This country is slowly going into depth. When in fact, taxing

The rich would enable thailand to be financially stable.

Tax the trillion baht private schools.

Not the million baht tutorials.

Tax the trillion baht business and land owners.

Not the million baht home owners.

Tax the resort and business land encroaches.

Not the little villagers that need a small piece to farm and live.

They should stop messing around with the little people and go to where the real money/taxes are.

The fairest tax is percentage tax.. with NO get out or reduction clauses.

The more you earn the more you pay. The bigger, more expensive house the more you pay.. but the same percentage for everyone.. That's fair.. as long as there are no reduction clauses.

Everyone uses the countries infrastructure so everyone should pay (possibly still leave a small minimum, mainly because it would cost more to retrieve )

Why should a small minority pay for everyone else? Is that fair. No!

In Thailand only 20% of the population pay income tax. This is a country that supposedly only has 1% unemployment.. Figure that one out!

[Loaded]

Like the land tax.

Another case of going after the small fish, while providing plenty of loopholes for the big fish.

This country is slowly going into depth. When in fact, taxing

The rich would enable thailand to be financially stable.

Tax the trillion baht private schools.

Not the million baht tutorials.

Tax the trillion baht business and land owners.

Not the million baht home owners.

Tax the resort and business land encroaches.

Not the little villagers that need a small piece to farm and live.

They should stop messing around with the little people and go to where the real money/taxes are.

The fairest tax is percentage tax.. with NO get out or reduction clauses.

1. The more you earn the more you pay. The bigger, more expensive house the more you pay.. but the same percentage for everyone.. That's fair.. as long as there are no reduction clauses.

Everyone uses the countries infrastructure so everyone should pay (possibly still leave a small minimum, mainly because it would cost more to retrieve )

Why should a small minority pay for everyone else? Is that fair. No!

2. In Thailand only 20% of the population pay income tax. This is a country that supposedly only has 1% unemployment.. Figure that one out!

1. You have the same simplistic viewpoint as the junta. Some people have inherited property but have small incomes, it's unfair on them. Retired people may have worked and saved hard during their working life to own their own home so that they have security when they retire, it's unfair on them.

2. That happens in a low-wage economy.

[Srikcir]

In privately financed businesses, an investor puts capital into the business with an intent to not only recover invested capital but a reasonable RETURN on that capital comparable as a minimum to business risks. That return comes out of the net operating income of the business. This return is important as it is also becomes the source for future capital.

Tax the profits and you reduce the return on capital. The only way to preserve return rates is then to devise tax reduction strategies, reduce operating expenses, and/or raise fees. Operating costs cover general & administrative costs and teacher wages. Fees are limited to what the market will tolerate assuming a constant quality of education.

If the Thai government prevents 10-20% fee increases to cover new taxes, teachers can expect no pay raises and perhaps even pay cuts. That will create a downward spiral in the supply of teachers to the point the school closes. The Junta needs to think carefully about endangering the survival of private education when the quality of public education is inferior to private education.

[casualbiker]

Like the land tax.

Another case of going after the small fish, while providing plenty of loopholes for the big fish.

This country is slowly going into depth. When in fact, taxing

The rich would enable thailand to be financially stable.

Tax the trillion baht private schools.

Not the million baht tutorials.

Tax the trillion baht business and land owners.

Not the million baht home owners.

Tax the resort and business land encroaches.

Not the little villagers that need a small piece to farm and live.

They should stop messing around with the little people and go to where the real money/taxes are.

The fairest tax is percentage tax.. with NO get out or reduction clauses.

1. The more you earn the more you pay. The bigger, more expensive house the more you pay.. but the same percentage for everyone.. That's fair.. as long as there are no reduction clauses.

Everyone uses the countries infrastructure so everyone should pay (possibly still leave a small minimum, mainly because it would cost more to retrieve )

Why should a small minority pay for everyone else? Is that fair. No!

2. In Thailand only 20% of the population pay income tax. This is a country that supposedly only has 1% unemployment.. Figure that one out!

1. You have the same simplistic viewpoint as the junta. Some people have inherited property but have small incomes, it's unfair on them. Retired people may have worked and saved hard during their working life to own their own home so that they have security when they retire, it's unfair on them.

2. That happens in a low-wage economy.

No. I have a realistic idea about taxation. No loopholes. No fancy accounting. Same tax rate for everyone. The two cases that you mention are a tiny percentage. If you have worked hard for retirement then you probably haven't gone overboard on the house so it should still be in keeping with salary earned. As for inherited properties if you can't afford to pay the bills you have to sell!

By the way the proposed house tax is about 250baht a YEAR for a house valued at 1 million baht, 750b for 2 million and about 1,250b for 3 million. And I imagine there can/will be a exemption for the retired!

You want fair for all. This IS fair for all!

[casualbiker]

In privately financed businesses, an investor puts capital into the business with an intent to not only recover invested capital but a reasonable RETURN on that capital comparable as a minimum to business risks. That return comes out of the net operating income of the business. This return is important as it is also becomes the source for future capital.

Tax the profits and you reduce the return on capital. The only way to preserve return rates is then to devise tax reduction strategies, reduce operating expenses, and/or raise fees. Operating costs cover general & administrative costs and teacher wages. Fees are limited to what the market will tolerate assuming a constant quality of education.

If the Thai government prevents 10-20% fee increases to cover new taxes, teachers can expect no pay raises and perhaps even pay cuts. That will create a downward spiral in the supply of teachers to the point the school closes. The Junta needs to think carefully about endangering the survival of private education when the quality of public education is inferior to private education.

Who do you think teaches at the cram schools / tutorial schools?

The same teachers that are giving the inferior public education!

And some insist that their students learn extra lessons at the cram school to ensure passing the exam etc...

[greenchair]

In privately financed businesses, an investor puts capital into the business with an intent to not only recover invested capital but a reasonable RETURN on that capital comparable as a minimum to business risks. That return comes out of the net operating income of the business. This return is important as it is also becomes the source for future capital.

Tax the profits and you reduce the return on capital. The only way to preserve return rates is then to devise tax reduction strategies, reduce operating expenses, and/or raise fees. Operating costs cover general & administrative costs and teacher wages. Fees are limited to what the market will tolerate assuming a constant quality of education.

If the Thai government prevents 10-20% fee increases to cover new taxes, teachers can expect no pay raises and perhaps even pay cuts. That will create a downward spiral in the supply of teachers to the point the school closes. The Junta needs to think carefully about endangering the survival of private education when the quality of public education is inferior to private education.

I don't know where you get your information from. The best matayom schools in Thailand are government schools. They have all the best teachers and pick of the students.

The kids that can't get into good government schools all go to private because they can't make the grade. The good thai teachers will not work at a private school because they don't pay well.

Only teachers who cannot pass the government test go private no amount of money will get them in a government schools without great grades and qualifications .

The government schools really do run on low budgets and should not be taxed.

But these private money making machines keep all their profits, when they should be paying top salaries for top teachers.

There is no reason they should not be paying taxes on their profits and plenty of it. And they should not be allowed dip into the government coffers either.

Trillions and trillions of profits these schools are making. Shameful. Leave the little tutorials alone to help the kids

[casualbiker]

In privately financed businesses, an investor puts capital into the business with an intent to not only recover invested capital but a reasonable RETURN on that capital comparable as a minimum to business risks. That return comes out of the net operating income of the business. This return is important as it is also becomes the source for future capital.

Tax the profits and you reduce the return on capital. The only way to preserve return rates is then to devise tax reduction strategies, reduce operating expenses, and/or raise fees. Operating costs cover general & administrative costs and teacher wages. Fees are limited to what the market will tolerate assuming a constant quality of education.

If the Thai government prevents 10-20% fee increases to cover new taxes, teachers can expect no pay raises and perhaps even pay cuts. That will create a downward spiral in the supply of teachers to the point the school closes. The Junta needs to think carefully about endangering the survival of private education when the quality of public education is inferior to private education.

I don't know where you get your information from. The best matayom schools in Thailand are government schools. They have all the best teachers and pick of the students.

The kids that can't get into good government schools all go to private because they can't make the grade. The good thai teachers will not work at a private school because they don't pay well.

Only teachers who cannot pass the government test go private no amount of money will get them in a government schools without great grades and qualifications .

The government schools really do run on low budgets and should not be taxed.

But these private money making machines keep all their profits, when they should be paying top salaries for top teachers.

There is no reason they should not be paying taxes on their profits and plenty of it. And they should not be allowed dip into the government coffers either.

Trillions and trillions of profits these schools are making. Shameful. Leave the little tutorials alone to help the kids

Thailand's education budget is the second largest percentage of budget (46%) in the world.

Private schools Trillions and trillions of profit.. Get real!

[greenchair]

In privately financed businesses, an investor puts capital into the business with an intent to not only recover invested capital but a reasonable RETURN on that capital comparable as a minimum to business risks. That return comes out of the net operating income of the business. This return is important as it is also becomes the source for future capital.

Tax the profits and you reduce the return on capital. The only way to preserve return rates is then to devise tax reduction strategies, reduce operating expenses, and/or raise fees. Operating costs cover general & administrative costs and teacher wages. Fees are limited to what the market will tolerate assuming a constant quality of education.

If the Thai government prevents 10-20% fee increases to cover new taxes, teachers can expect no pay raises and perhaps even pay cuts. That will create a downward spiral in the supply of teachers to the point the school closes. The Junta needs to think carefully about endangering the survival of private education when the quality of public education is inferior to private education.

I don't know where you get your information from. The best matayom schools in Thailand are government schools. They have all the best teachers and pick of the students.

The kids that can't get into good government schools all go to private because they can't make the grade. The good thai teachers will not work at a private school because they don't pay well.

Only teachers who cannot pass the government test go private no amount of money will get them in a government schools without great grades and qualifications .

The government schools really do run on low budgets and should not be taxed.

But these private money making machines keep all their profits, when they should be paying top salaries for top teachers.

There is no reason they should not be paying taxes on their profits and plenty of it. And they should not be allowed dip into the government coffers either.

Trillions and trillions of profits these schools are making. Shameful. Leave the little tutorials alone to help the kids

Thailand's education budget is the second largest percentage of budget (46%) in the world.

Private schools Trillions and trillions of profit.. Get real!

Not wanting to name names.

But go to a certain popular bilingual school.

It is 60,000 baht per year.

There are 3 classes of each grade.

There are 40 children per class.

K1-k3 + g1-g6 + m1-m6.

15 grades.

So......

15 × 3 = 45 classes

45 × 40 = 1,800 students

1,800 × 60,000.

You do the math.

And that is a small private school.

Poor underfunded private schools my backside.

[casualbiker]

In privately financed businesses, an investor puts capital into the business with an intent to not only recover invested capital but a reasonable RETURN on that capital comparable as a minimum to business risks. That return comes out of the net operating income of the business. This return is important as it is also becomes the source for future capital.

Tax the profits and you reduce the return on capital. The only way to preserve return rates is then to devise tax reduction strategies, reduce operating expenses, and/or raise fees. Operating costs cover general & administrative costs and teacher wages. Fees are limited to what the market will tolerate assuming a constant quality of education.

If the Thai government prevents 10-20% fee increases to cover new taxes, teachers can expect no pay raises and perhaps even pay cuts. That will create a downward spiral in the supply of teachers to the point the school closes. The Junta needs to think carefully about endangering the survival of private education when the quality of public education is inferior to private education.

I don't know where you get your information from. The best matayom schools in Thailand are government schools. They have all the best teachers and pick of the students.

The kids that can't get into good government schools all go to private because they can't make the grade. The good thai teachers will not work at a private school because they don't pay well.

Only teachers who cannot pass the government test go private no amount of money will get them in a government schools without great grades and qualifications .

The government schools really do run on low budgets and should not be taxed.

But these private money making machines keep all their profits, when they should be paying top salaries for top teachers.

There is no reason they should not be paying taxes on their profits and plenty of it. And they should not be allowed dip into the government coffers either.

Trillions and trillions of profits these schools are making. Shameful. Leave the little tutorials alone to help the kids

Thailand's education budget is the second largest percentage of budget (46%) in the world.

Private schools Trillions and trillions of profit.. Get real!

Not wanting to name names.

But go to a certain popular bilingual school.

It is 60,000 baht per year.

There are 3 classes of each grade.

There are 40 children per class.

K1-k3 + g1-g6 + m1-m6.

15 grades.

So......

15 × 3 = 45 classes

45 × 40 = 1,800 students

1,800 × 60,000.

You do the math.

And that is a small private school.

Poor underfunded private schools my backside.

How many teachers? How many support staff etc etc. Electric etc etc

And generally it's a sliding scale for student fees.

[greenchair]

In privately financed businesses, an investor puts capital into the business with an intent to not only recover invested capital but a reasonable RETURN on that capital comparable as a minimum to business risks. That return comes out of the net operating income of the business. This return is important as it is also becomes the source for future capital.

Tax the profits and you reduce the return on capital. The only way to preserve return rates is then to devise tax reduction strategies, reduce operating expenses, and/or raise fees. Operating costs cover general & administrative costs and teacher wages. Fees are limited to what the market will tolerate assuming a constant quality of education.

If the Thai government prevents 10-20% fee increases to cover new taxes, teachers can expect no pay raises and perhaps even pay cuts. That will create a downward spiral in the supply of teachers to the point the school closes. The Junta needs to think carefully about endangering the survival of private education when the quality of public education is inferior to private education.

I don't know where you get your information from. The best matayom schools in Thailand are government schools. They have all the best teachers and pick of the students.

The kids that can't get into good government schools all go to private because they can't make the grade. The good thai teachers will not work at a private school because they don't pay well.

Only teachers who cannot pass the government test go private no amount of money will get them in a government schools without great grades and qualifications .

The government schools really do run on low budgets and should not be taxed.

But these private money making machines keep all their profits, when they should be paying top salaries for top teachers.

There is no reason they should not be paying taxes on their profits and plenty of it. And they should not be allowed dip into the government coffers either.

Trillions and trillions of profits these schools are making. Shameful. Leave the little tutorials alone to help the kids

Thailand's education budget is the second largest percentage of budget (46%) in the world.

Private schools Trillions and trillions of profit.. Get real!

Not wanting to name names.

But go to a certain popular bilingual school.

It is 60,000 baht per year.

There are 3 classes of each grade.

There are 40 children per class.

K1-k3 + g1-g6 + m1-m6.

15 grades.

So......

15 × 3 = 45 classes

45 × 40 = 1,800 students

1,800 × 60,000.

You do the math.

And that is a small private school.

Poor underfunded private schools my backside.

How many teachers? How many support staff etc etc. Electric etc etc

And generally it's a sliding scale for student fees.

1 class 60,000 × 40

2 million 400,000 per year.

they choose the least qualified and cheapest teachers, but let's count the highest salary.

1 teacher

15,000 × 12 = 180,000

Air 2,000 × 12 = 24,000

Foreigner divided between classes say 5,000 × 12 =70,000

Guestimate. 300,000 per year per class running expense.

2 million 400,000 - 300,000

Profit 2 million × 15 classes

30 million tax free profit.

That doesn't include after school classes and summer schools which possibly can bring another 3 to 5 million per year.

Swimming fees,lunch fees, uniforms, books, all bring in money. And lets not forget, most of the schools receive between 2 or 3,000 baht per child per year,government funding

I think it would be an extremely low estimate to say just 1 of those schools makes around 50 million profit per year.

The Catholic schools have 4 to 5,000 students.

Trillion baht industry.

Do the math????

[casualbiker]

In privately financed businesses, an investor puts capital into the business with an intent to not only recover invested capital but a reasonable RETURN on that capital comparable as a minimum to business risks. That return comes out of the net operating income of the business. This return is important as it is also becomes the source for future capital.

Tax the profits and you reduce the return on capital. The only way to preserve return rates is then to devise tax reduction strategies, reduce operating expenses, and/or raise fees. Operating costs cover general & administrative costs and teacher wages. Fees are limited to what the market will tolerate assuming a constant quality of education.

If the Thai government prevents 10-20% fee increases to cover new taxes, teachers can expect no pay raises and perhaps even pay cuts. That will create a downward spiral in the supply of teachers to the point the school closes. The Junta needs to think carefully about endangering the survival of private education when the quality of public education is inferior to private education.

I don't know where you get your information from. The best matayom schools in Thailand are government schools. They have all the best teachers and pick of the students.

The kids that can't get into good government schools all go to private because they can't make the grade. The good thai teachers will not work at a private school because they don't pay well.

Only teachers who cannot pass the government test go private no amount of money will get them in a government schools without great grades and qualifications .

The government schools really do run on low budgets and should not be taxed.

But these private money making machines keep all their profits, when they should be paying top salaries for top teachers.

There is no reason they should not be paying taxes on their profits and plenty of it. And they should not be allowed dip into the government coffers either.

Trillions and trillions of profits these schools are making. Shameful. Leave the little tutorials alone to help the kids

Thailand's education budget is the second largest percentage of budget (46%) in the world.

Private schools Trillions and trillions of profit.. Get real!

Not wanting to name names.

But go to a certain popular bilingual school.

It is 60,000 baht per year.

There are 3 classes of each grade.

There are 40 children per class.

K1-k3 + g1-g6 + m1-m6.

15 grades.

So......

15 × 3 = 45 classes

45 × 40 = 1,800 students

1,800 × 60,000.

You do the math.

And that is a small private school.

Poor underfunded private schools my backside.

How many teachers? How many support staff etc etc. Electric etc etc

And generally it's a sliding scale for student fees.

1 class 60,000 × 40

2 million 400,000 per year.

they choose the least qualified and cheapest teachers, but let's count the highest salary.

1 teacher

15,000 × 12 = 180,000

Air 2,000 × 12 = 24,000

Foreigner divided between classes say 5,000 × 12 =70,000

Guestimate. 300,000 per year per class running expense.

2 million 400,000 - 300,000

Profit 2 million × 15 classes

30 million tax free profit.

That doesn't include after school classes and summer schools which possibly can bring another 3 to 5 million per year.

Swimming fees,lunch fees, uniforms, books, all bring in money. And lets not forget, most of the schools receive between 2 or 3,000 baht per child per year,government funding

I think it would be an extremely low estimate to say just 1 of those schools makes around 50 million profit per year.

The Catholic schools have 4 to 5,000 students.

Trillion baht industry.

Do the math

I have no idea which school your talking about but I work in a large catholic school (3,*** students). And they are certainly making money, they are catholic after all.

My school EP charges about 50-60k baht per year depending on age. 18-28 kids in a class.

Intensive English is 28-36k per year, 28-38 kids in a class but separated in two classes for English. Then normal programme 12- 24k per year. 35-42 students per class. Again separated for English.

I know other schools that are cheaper and of course many that are more expensive.. But they aren't all 60k a year.. Also you forgot all the ancillary staff that are needed. Office staff,drivers, gardener's, kitchen staff and even a school nurse or two.

The fact is if all private schools shut down tomorrow it would be a disaster for education in Thailand!

But saying that, would I send my kid to my own school.. Ummm anuban yes, pratum 1-6 and mattayom ... Nope, mainly because of the academic management section. The teaching staff are generally OK.. The management!!!!!!