Bangladesh top court orders private universities to pay 15% tax

The Appellate Division overturns a High Court ruling that declared the NBR's tax imposition as invalid

The Supreme Court has ordered private universities in Bangladesh to pay a 15 percent tax on their earnings.

An Appellate Division bench led by Justice Borhanuddin issued the order on Tuesday.

On Jun 28, 2007, the National Board of Revenue issued a notice stating that private universities recognised by the University Grants Commission must pay a 15 percent tax on their income.

The NBR also issued another notice on Jul 1, 2010, which said that the tax payable on the income generated by private universities, private medical colleges, private dental colleges, private engineering colleges, or any other private institution engaged in teaching would be reduced to 15 percent.

Following the notices issued by the NBR, as many as 46 writ petitions were filed by various private universities across Bangladesh.

On Feb 9, 2021, the Appellate Division agreed to hear appeal against a High Court ruling that declared the notifications issued by the NBR as invalid.

The NBR was also directed against collecting income tax from universities until the Appellate Division disposed of the appeal.

The appeal process culminates in the Supreme Court's decision to uphold the 15 percent tax rate.