University of Asia Pacific filed the writ petition challenging the Finance Act, 2021
The High Court has directed the government to refrain from collecting 15% income tax from the private universities.
The High Court bench of Justice Syed Refat Ahmed and Justice Shashank Shekhar Sarkar passed the order on Monday following a preliminary hearing on a writ petition filed on behalf of the University of Asia Pacific on September 16.
In the petition, five persons including the secretary of the Law Ministry, the secretary of the Finance Ministry and the NBR chairman were named as defendants.
The private university filed the petition challenging the Finance Act, 2021.
The government imposed a 15% tax on private universities, and private medical, dental and engineering colleges, including the ones offering IT education based on the Finance Act, 2021 in this year’s budget.
Following the announcement, the Association of Private Universities of Bangladesh (APUB) as well as members of the parliament criticized the move to impose tax on educational institutions.
In 2015, the government imposed a 7.5% value added tax (VAT) on tuition fees of private universities, medical and engineering colleges, which, however, was withdrawn following several days of students' protest.