The Appellate Division has disposed of an appeal filed by the government seeking 15% income tax from all private universities in Bangladesh.
A three-member bench of the Appellate Division headed by Justice Borhanuddin passed the order on Tuesday.
Additional Attorney General Sk Md Morshed told the media that private universities and private medical, dental, and engineering colleges must pay income tax to the state following the verdict.
The details of the procedure will be known once the apex court releases the full verdict, he added.
The National Board of Revenue (NBR) issued a gazette notification on June 28, 2007, imposing the 15% income tax on private universities, to be effective from July 1 of that year.
In another gazette notification, the NBR imposed the same 15% income tax on private universities, medical, engineering colleges and ICT institutes.
After that, different universities filed 46 petitions challenging the government's decision.
Upon the final hearing on the petitions, the High Court on September 5, 2016, found the notifications illegal, thus ordering the NBR to refund the money realized 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 February 9, 2021. The Appellate Division also stayed the High Court order on refunding money to the private universities.
On April 6, 2023, the Appellate Division of the Supreme Court upheld a High Court order asking the NBR not to collect income tax from private universities in the country.