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Outflow from private schools because of 23% VAT

19 August 2015 / 10:08:05  GRReporter
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Private educational structures in Greece will shrink after the imposition of 23% VAT on tuition fees of foreign language schools, training centres, colleges and schools.

In statements to the newspaper Ethnos the representatives of private education predict that some companies will not be able to bear the burden of the VAT increase to 23% and will close down, thus forcing many parents to write off their children from private schools and enrol them in public ones.

The situation in foreign language schools ​​and training centres throughout the country is similar, as the general prevailing feeling is that there will be a serious outflow of students, although the enrolment for the next school year is just about to begin. Quite likely, many students will prefer private lessons the prices of which have significantly fallen since almost no one issues receipts.

In any case, the representatives of private education openly express their concern over forced cuts of teachers because staff reduction would be required if the number of students decreased or schools were closed down.

Charalambos Kirailidis, chairman of the association of private schools founders and owners states that the management board of the association will meet on Saturday and he himself will propose to turn to the Greek and European courts regarding VAT on tuition fees. He will also urge the parents of children studying at private schools to sign a protest letter that will be sent to Prime Minister Alexis Tsipras.

Charalambos Kirailidis stresses that what is happening with VAT is unfair because 90% of pupils in private schools are from middle-class families.

He believes that if the situation with VAT does not change 30% of private schools may close down, tens of thousands of children may move to public schools, and there will be a large number of redundant teachers.

Foreign language schools ​​and training centres offering lessons in different school subjects, the total number of which across the country is 9,000 (6,500 foreign language schools ​​and 2,500 training centres) are concerned as well.

Tags: Private SchoolsCollegesVATTaxationOutflowCuts
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