Tag Archives: graduate tax

HIGHER EDUCATION COST-SHARING COUNCIL OF MINISTERS REGULATION Number 91 of 2003


Brief note

Starting from 2003/04 academic year students enrolled in public universities were required to cover their costs of education. Such cost includes full costs related with boarding and lodging and minimum 15% of tuition related costs. This cost sharing regulation imposes a pre-condition on every student to enter a written contract agreement with the respective institution before he is allowed to pursue his education.

Even though, Article 4 of the regulation, states that the amount to be share shall be shall be revealed to the student,  this amount is likely to increase at the time of graduation. According to sub article 4 of article 4 the cost of education and training shall be revised at least every three years. Almost all the disciplines in the public universities require four years of study for graduation. A possibility of revision every three years is in effect giving a power to unilateral modify the contract as the regards the total costs require from the student.

The students once gradated will start making payment within six months after graduation if earning income or within a maximum of one year after graduation, in the form of graduate tax of at least 10% of the monthly income. He is expected to pay all of his costs within a maximum of 15 years.

According to article 6 ( 7) a  beneficiary [ Article 2 (5) defines beneficiary as a student at a public higher education institution pursuing higher education or training and who has entered into an obligation with the concerned institution for the future payment of the cost of his/her education or training and other services]  who decides to go abroad for more than six months before completing the payment of the cost required of him, shall be made to produce a guarantee for the payment of the outstanding amount. However, contrary to this explicit provision most universities refuse to give Degree and Transcript of the student and in some cases other relevant evidences (like proof of language of instruction) until final settlement of debt. However, this is not only contrary to the regulation, but also a manifest violation of the right to education enshrined in F.D.R.E. Constitution.

 

 

COUNCIL OF MINISTERS REGULATION NO. 91/2003

HIGHER EDUCATION COST-SHARING COUNCIL OF MINISTERS REGULATION

This regulation is issued by the Council of Ministers pursuant to Article 5 of the Definitions of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation No. 4/1995 and the Higher Education Proclamation No. 351/2003.

1. Short Title

This Regulation may be cited as the “Higher Education Cost-Sharing Council of Ministers Regulation No. 91/2003″

2. Definitions
For the purposes of this Regulation:

1) “Ministry” and “Minister” means Ministry of Education and the Minister of Education, respectively.

2) “Institution” means a public higher learning institution in any region, in Addis Ababa or Dire Dawa offering a post-secondary education with a budget allocated from the Federal Government.

3) “Employer” means any government, private or non-governmental institution or international or regional organization  or person employing graduates of higher education institutions including self-employed graduate of the same,

4) “Person” means a physical person or any other legal person,

5) “Beneficiary” means a student at a public higher education institution pursuing higher education or training and who has entered into an obligation with the concerned institution for the future payment of the cost of his/her education or training and other services.’

6) “Cost-Sharing” means a scheme by which all beneficiaries of public higher education institutions and the government share the cost incurred for the purposes of education and other services.

7) “Graduate Tax” means a scheme by which an amount is deducted from income in the form of a tax to be paid by a beneficiary who has been obliged to share the costs of his higher education. Continue reading →

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