SHC bars private schools from increasing fees by more than 5pc

The Sindh High Court on Thursday restrained private schools from increasing tuition fees by more than 5 per cent above their last fee schedule in violation of the Sindh Private Educational Institutions (Regulation and Control) Ordinance 2001 and its rules.

The directives came on the petition of Sobia Naseem and other parents who had challenged the increase of tuition fees by private schools. They had submitted that their children were studying in private schools situated in KDA Scheme in primary and secondary sections and the school administration had issued notices increasing the fee by 12 to 14 per cent, which was in violation of the Sindh Private Educational Institutions Ordinance.

Their counsel Ammar Naseer submitted in the petition that private educational institutions could only increase tuition fees up to 5 per cent on their last fee schedule, subject to proper justification and prior approval of the registration authority.

He added that in similar cases, the high court has already restrained schools from charging enhanced fees up to 5 per cent, but the school administration extended the stay benefit to only those students whose parents had filed the petition in the court, and not to all students.

Naseer also questioned the levying of advance income tax under Section 236 (1) of the Income Tax Ordinance, saying that adding such a charge to tuition fees is illegal as it is an expenditure of a person.

He submitted that the education department unlawfully allowed and was acquiesced in the exorbitant annual and periodic fee hikes by the private schools in violation of the schools regulation laws. Besides, he said, the fee structure of private schools includes hefty admission fees charged to the parents, which was also a gross violation of Rule 7 of the Sindh Private Educational Institutions Rules 2005.

The counsel further said administrations of private schools were sending reminders and notices to parents with regard to enhancement of fees which was unlawful. He requested the court to direct the schools to act strictly in accordance with the law and direct the education department to take action against the school administrations for 14 per cent increase in tuition fees.

The petitioners also challenged advance tax provisions relating to fees and charges of educational institutions as contained in Income Tax Ordinance 2001 as same are ultra vires the constitution and requested the court to order a refund of all advance income tax taken from petitioners.

After a preliminary hearing of the petition, the SHC division bench headed by Justice Aqeel Ahmed Abbasi issued notices to the provincial law officer, education secretary and private schools’ administrations and called for their comments on September 7.

The court, in the meantime, ordered that private schools shall not collect increased fees if the increase was of more than 5 per cent above the last fee schedule, and that they should charge fee on petitioners as per the old fee structure.

The court also issued notices to the attorney general and advocate general Sindh on a question with regard to the collection of advance tax from parents. A full bench of the SHC has already reserved judgment on petitions against increase of tuition fees in private schools.