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High Court orders to halt collecting income tax from private universities

  • Published at 10:19 pm September 20th, 2021
High Court-HC-court
File photo of the High Court Dhaka Tribune

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.

Also Read - Lawmakers slam proposal to impose tax on private universities

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.

Also Read - APUB: Income tax on private universities against the law

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value added tax (VAT) on tuition fees of private universities, medical and engineering colleges, which, however, was withdrawn following several days of students' protest.