News Desk :
Private university owners have urged the Prime Minister to withdraw the 15% income tax on the universities.
Association of Private Universities of Bangladesh (APUB), in a statement published Saturday, said 15% income tax on private universities, which are non-profit organizations and operate as a trust following the Private University Act 2010, is “contradictory” to the act.
The press release, issued by APUB Chairman Sheikh Kabir Hossain, read that imposition of the same amount of income tax on non-profitable private universities as well as the profitable private medical and engineering colleges is against the private university act.
Private universities are helping the development of higher education in Bangladesh. They have a remarkable contribution to reducing the number of students going abroad for study thus saving foreign currency as well as the deduction of brain drain, the statement said.
Also, many students from abroad are coming to Bangladesh for higher studies and Bangladesh is earning foreign currency, it said.
During the Covid-19 pandemic, many private universities are facing financial crisis. Managing salaries of teachers, employees and rent of university buildings have become uncertain.
In this situation, all stakeholders, including students and their guardians are concerned over the imposition of the 15% income tax on private universities, read the statement.
The tax will badly impact private universities and increase education cost for students, said the chairman.
While placing the budget for 2021-22 fiscal at the parliament, Finance Minister AHM Mustafa Kamal proposed 15% tax on private universities, and private medical, dental and engineering colleges, including the ones offering IT education.
The government in 2015 imposed a 7.5% value added tax on tuition fees of private universities, medical and engineering colleges.
However, had to withdraw the tax following several days of students’ protest.
