The government imposed the tax in 2007 and 2020
The country’s top court has ordered the National Board of Revenue not to collect income tax from private universities in the country until further notice.
The Appellate Division, however, has allowed the government to file a leave to appeal petition challenging the High Court order that declared illegal two government circulars on imposing 15% income tax on private universities.
An Appellate Division bench headed by Chief Justice Syed Mahmud Hossain issued the order on Tuesday, reports Bangla Tribune.
Attorney General AM Amin Uddin represented the state while M Amir-ul Islam, Fida M Kamal and Md Sakhawat Hossain stood for the private universities.
It may be mentioned that the NBR issued a gazette notification on June 28, 2007, imposing the 15% income tax on private universities, to be effective from July 1 that year.
In another gazette notification on July 1 last year, the NBR imposed the same 15% income tax on private universities, medical, engineering colleges and ICT institutes.
After that, different universities filed 46 writs challenging the government decision.
Upon the final hearing on the writs, the High Court on September 5, 2016 found the notifications illegal, thus ordering the NBR to refund the money realised in line with the government circulars.
Subsequently, the state pleaded to be allowed to file a leave to appeal with the apex court, which was finally granted on Tuesday. The Appellate Division also stayed the High Court order on refunding money to the private universities.