All Private Universities Must Pay Tax: Appellate Division

The Appellate Division ruled that all private universities must pay 15 percent tax (income tax). Today Tuesday (February 27) a four-member appellate bench led by senior judge of the Appellate Division Borhan Uddin passed the verdict. Attorney General AM Amin Uddin appeared for the state in the court.

On June 28, 2007, the National Board of Revenue (NBR) issued a notification. According to the notification, income tax has been re-fixed at the rate of 15 percent on the income generated by University Grants Commission-approved private universities and other universities which are not public universities. It will be effective from July 1.

In another notification of NBR on July 1, 2010, it is said that the rate of income tax payable on the income generated by private universities, private medical colleges, private dental colleges, private engineering colleges, or private colleges engaged in teaching only information technology has been reduced to 15 percent except for public universities.

Later, when the private universities filed a writ petition, the High Court on September 5, 2016 declared the levy of tax on private universities illegal. Following the government's appeal against it, the Appellate Division in an order on February 9, 2021 ordered the private university not to levy the tax until the government's appeal is disposed of.

On April 6, 2023, the Appellate Division upheld the judgment given by the High Court that private universities do not have to pay income tax. Senior Advocate AF Hasan Arif, Barrister Omar Sadat were in the hearing for the writ in the court. On the other hand, Attorney General A M Amin Uddin, Additional Attorney General Sheikh Mohammad Morshed heard the state side. At the same time, the Appellate Division has upheld the final hearing order of the writ petitions in the High Court.

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