On the heels of the education sector suffering the brunt of the successive Covid and economic crises that befell Sri Lanka, the recent Value-Added Tax (VAT) increase is set to impose an added burden on children’s education, affecting parents’ ability to educate their children.
Massive increases in the costs of books, shoes, uniforms, and other school accessories, as well as food expenditure and transport fares, have significantly impacted the education of children.
Negative coping mechanisms
Traders, parents, and teachers whom The Sunday Morning spoke to revealed that the situation was painful on all sides, with corners being cut and negative coping mechanisms being adopted to ensure an education for children.
Rajesh, a parent with a child attending Grade 1 at a school in Colombo, said that they had significantly changed their purchasing behaviour in order to adapt to the high costs.
“Previously, we would purchase the entire book list from one store, but now we have to go to multiple stores to check for discounts and then purchase from whichever store that offers the lowest prices. Schools have asked for stationery and equipment belonging to certain brands, but it is difficult for us to afford branded items. In a situation where we have to trawl many bookshops trying to find the cheapest, lowest quality books and equipment, schools requesting branded items is extremely burdensome.”
“We are trying to provide our children with quality education,” he stressed, adding that this was fast becoming an impossibility for most parents, especially in households where only one parent was employed. “In my household, I am the only one who is employed, while my wife takes care of our son. Since he is now in Grade 1, costs for school have increased; for instance, transport costs, the book list for the year, etc. I find it difficult to cover these increased expenses.”
As a result, he noted that they would have to cut back on other essentials, such as meals and clothes, in order to cover education expenses this year. “We will have to sacrifice either meals or clothes to provide for his education, since education is more important,” he said. “However, given this situation, it is difficult to build a good future for our children through education.”
According to him, other school accessories are similarly costly, with them having to spend around Rs. 12,000 on uniforms alone for the year.
Shashi, a parent with a child attending Grade 2 at a private school, noted that costs of stationery and equipment had risen significantly over the year, with a school book list for one term costing Rs. 12,000 this year, while the booklist for the entire year in 2023 had only cost her around Rs. 8,000.
Meanwhile, the price of workbooks that needed to be purchased from the school itself had also risen, she noted, with her having to pay Rs. 4,000 for the workbooks of one subject alone this year, in comparison to the Rs. 8,000 total spent on workbooks for all subjects last year.
While the cost of uniforms has risen over last year, she also has to contend with buying more material due to her child’s inevitable growth spurt. She noted that school fees too had undergone an increase, with the fees for a term amounting to around Rs. 43,000 in 2023, whereas the fee has been increased to around Rs. 46,000 this year.
Less purchases
Meanwhile, several traders told The Sunday Morning that many customers who had come to buy stationery and school items were struggling to purchase the entire book list issued by schools and were therefore making considerably less purchases than before.
A stationery store owner at the Pettah People’s Park Complex noted that while prices had not increased yet, a hike was imminent: “Prices are still at the old level, however they are likely to increase going forward due to the VAT. Given the 3% VAT increase, which will lead to heightened transport costs, etc., I believe there will be at least a 30% increase in prices.”
He noted that this would especially affect the popular imported Chinese goods in stationery stores, the prices of which had already been increased, as well as local brands, some of which had informed traders that their prices would soon increase.
Moreover, the VAT hike has also led to a significant drop in imports, with importers resorting to bringing down goods infrequently given the high costs. “Once our current stocks are depleted, we will have to sell at the new prices,” he noted, adding that they would have to sell existing stocks at a higher price in future.
He has also observed a significant 30% drop in consumer footfall compared to last year, as well as reduced purchases per consumer – an issue that has been compounded by the Government’s changes to the school schedule. “We can only start a new season once third term holidays are given. Other than book lists for Montessoris, we are yet to receive any Government school book lists.”
The situation has also led to changed consumer purchasing patterns, he noted: “Back then, people used to give an entire book list and purchase all items on the list. Now they carefully consider the items they already own and reduce what they need to buy anew. Around 60% of the book lists we get now have been downsized in this manner.”
The store owner of Sudha Bookshop in the People’s Park Complex told The Sunday Morning that they would have to increase the prices of school stationery and equipment by at least 50% due to VAT.
“Although VAT is a 3% increase, both diesel and power bills have increased, which will impact different slabs such as manufacturers and distributors as well. Therefore, we will have to increase our prices by at least 50%.”
“Many parents are buying school books for their children with the greatest difficulty,” he noted, adding that although he was providing books at a considerable discount, consumers still found it inadequate, but noted that since customers came to Pettah from distant places in search of a good deal, he tried to offer as much of a discount as possible.
The owner of S. Lankan Traders – a wholesale stationery shop – noted that the VAT-induced price increase was currently affecting stationery products and imported items, although exercise books still remained unaffected. Moreover, customer purchases have dropped drastically, with an almost 25% difference compared to last year. While there was no shortage, the price of goods was keeping customers away, he noted.
VAT vs. education
Meanwhile, Ceylon Teachers’ Service Union President Dammika Alahapperuma said that given the importance of education to the future of the country, any VAT on education-related items should be unconditionally removed.
“Due to increased costs, parents lose the ability to finance school equipment, transport, and food. Without school equipment, children will be reluctant to attend school, withdraw from education, and even suffer from mental stress. Trying to work in a classroom amidst various shortcomings will not only inconvenience children, but add to their other existing familial pressures.”
He asserted that this constituted a grave crime against children, noting that children were facing a social tragedy that went beyond the mere absence of material objects.
He further shared that it was not easy for schools to function under these circumstances: “According to the information from schools, a significant number of students have withdrawn from attending school, since they don’t have school equipment, shoes, bags, etc. Meanwhile, those who do attend are infrequent in their attendance. Teachers can’t make any demands over this lack of attendance either, since they understand the difficulties the students face.”
He strongly critiqued the lack of response from the Government regarding this pressing concern, pointing out that it was not paying adequate attention to the gravity of the situation.
