The Supreme Court on Monday issued status quo on National Board of Revenue's (NBR's) action for collecting income tax from four private universities.
The four private institutions are University of Liberal Arts Bangladesh (ULAB), North South University (NSU) and Southeast University, Dhaka, and Independent University, Bangladesh (IUB).
Justice Md Ashfaqul Islam, chamber judge of Appellate Division of the Supreme Court, passed the order following three separate appeals filed by the four private universities challenging a notice issued by the NBR demanding income tax from them.
The court also set April 21 for further hearing on the appeals at its full bench.
Earlier on March 4, The NBR issued a notice asking his client to pay income tax and saying that their bank accounts would be frozen, although full judgement of the apex court on the issue was yet to be released.
The NBR issued a gazette notification on June 28, 2007, imposing the 15% income tax on private universities, to be effective 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 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's 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.
