The Appellate Division of the Supreme Court has ruled that all private universities are required to pay a 15 percent tax. This decision was reached following an appeal concerning the government's imposition of income tax on private universities at the rate of 15 percent.

On Tuesday (February 27), the Appellate Bench, led by Senior Judge Borhan Uddin, issued the directive.

Attorney General AM Amin Uddin clarified that the tax would be borne by the university authorities, and students would not be liable to pay it. He represented the state in court, while senior advocate AF Hasan Arif supported the writ.

It is noteworthy that a notification issued by the National Board of Revenue (NBR) on June 28, 2007, reinstated the income tax rate of 15 percent on private universities approved by the University Grants Commission, as well as other non-public universities, effective from July 1.

Subsequently, a notification issued by the NBR on July 1, 2010, stipulated that the income tax rate applicable to private universities, private medical colleges, private dental colleges, private engineering colleges, or private colleges exclusively engaged in information technology education, and the income generated from these institutions, would be reduced to 15 percent, excluding public universities.

However, when private universities challenged the levy of tax through a writ petition, the High Court declared it illegal on September 5, 2016.

On February 9, 2021, the Appellate Division granted permission to appeal against the High Court's judgment, declaring two income tax collection notifications from private universities at the rate of 15 percent illegal. Additionally, the NBR was instructed to refrain from collecting this income tax until the appeal was resolved.

Subsequently, in June 2023, the Supreme Court upheld the Appellate Division's order to halt income tax collection until the appeal regarding the government's imposition of a 15 percent tax rate on private universities was settled. Moreover, 46 writ petitions filed by various private universities concerning income tax collection were upheld by the High Court.