Is this extortion?

In my new school, every student must pay 250 PHP (or 4.30 US dollars) for every absence during an event (like intramurals or parades.) Even though we don't have classes during those periods. If we don't pay, we will get penalties.

This is the first time I have encountered something like this, my parents are pissed, I'm not the only one—my classmates too think this is extortion.

Not to mention we also have to pay the mandatory 'council fee' which is 980 (or 16.87 dollars) and give it to a council member. Why? What for??

Am I overreacting or is this extortion?