Private Universities must pay 15% tax: Appellate Division

The Appellate Division ruled that all private universities must pay 15 percent tax.

The Appellate Bench headed by Senior Judge Borhan Uddin passed the order on Tuesday (February 27). The court gave this verdict by settling the appeal on the collection of income tax at a 15% rate from private universities.

In this case, Attorney General AM Amin Uddin gave the hearing for the prosecution in the court. Senior advocate AF Hasan Arif appeared for the writ.

Attorney General AM Amin Uddin said, "The private university authorities will have to pay 15 percent tax, not the students. This VAT will be applicable on the profit after payment of salary."

In a notification issued by the National Board of Revenue (NBR) on June 28, 2007, it is said, "Income tax has been revised at the rate of 15 percent on the income generated by private universities approved by the University Grants Commission and other universities that are not public. It will be effective from July 1."

Another notification of NBR on July 1, 2010, said, "Income tax rate payable on income derived from private universities, private medical colleges, private dental colleges, private engineering colleges or private colleges engaged only in information technology education and the income derived has been reduced to 15 percent except for public universities."

Later, when the private universities filed a writ petition, the High Court declared the levy of tax on the private universities illegal on September 5, 2016. 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.