The Supreme Court has mandated that private universities in Bangladesh must pay a 15-percent tax on their earnings.
The Appellate Division of the Supreme Court, on Tuesday, paved the way for the National Board of Revenue (NBR) to collect income tax from private educational institutions, including private universities, as well as private medical, dental, and engineering colleges.
The order was issued by an Appellate Division bench led by Justice Borhanuddin.
During the apex court hearing, Attorney General AM Amin Uddin represented the state, while lawyers Probir Neogi, Khairul Alam Choudhury, and others appeared on behalf of various private universities.
Attorney General Amin Uddin announced that, as a result of the apex court's decision, private universities in the country are now required to pay a 15 per cent income tax.
Lawyers Probir Neogi and Khairul Alam Choudhury, representing the University of Asia Pacific and East West University respectively, echoed this sentiment after the Appellate Division's verdict.
This development follows 46 separate writ petitions filed by private universities.
On September 5, 2016, the High Court declared illegal the government orders imposing a 15 per cent income tax on private educational institutions.
The High Court also invalidated three statutory regulatory orders for tax imposition issued by the government in 2007 and 2010, directing the NBR to refund the money collected as income tax from the writ petitioners since 2007.
However, on September 7 of the same year, the Chamber Judge of the Appellate Division, in response to a government petition, partially stayed the High Court verdict, suspending the government orders that imposed a 15 per cent income tax on private institutions and the directive to refund collected money.
On February 9, 2021, the Appellate Division overturned its Chamber Judge's directives, instructing the NBR not to demand or collect any income tax from private universities nationwide until further orders.
Subsequently, the state filed 45 appeal petitions against the High Court verdict. Following a hearing on Tuesday, the Appellate Division set aside the High Court verdict, disposing of the case.
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