Staff Reporter :
The Appellate Division of the Supreme Court on Tuesday directed the National Board of Revenue (NBR) not to demand and collect any income tax from the private universities across the country until further orders.
The apex court at the same time allowed the government to move separate appeals petitions before it against the High Court verdict that in 2016 had declared illegal the government orders which imposed 15 percent income tax on the private educational institutions including private universities and private medical, dental and engineering colleges.
A four-member bench of the Appellate Division headed by Chief Justice Syed Mahmud Hossain came up with the orders after holding hearing on 46 separate leave-to-appeal petitions filed by the government challenging the HC verdict.
Barrister Omar Sadat who appeared in the court on behalf of two private universities, University of Liberal Arts Bangladesh and World University, said following the SC order the NBR cannot demand any income tax from his clients until final disposal of the appeals in connection with the relevant case.
Meanwhile, Mohammad Sakhawat Hossain, another lawyer for the private universities, said no private educational institutions need to pay income tax to the government till disposal of the appeals.
There are 98 private universities in Bangladesh and among them 84 having 4.5 lakh students are currently active, he added.
Senior counsels, M Amir-Ul Islam, AF Hasan Ariff, Rokanuddin Mahmud, Fida M Kamal and Prabir Neogi also appeared for the private universities during virtual hearing on the leave to appeal petitions.
Following 46 separate writ petitions filed by the private universities including North South University, World University and University of Liberal Arts Bangladesh, the HC on September 5, 2016 declared illegal the government orders that imposed 15 percent income tax on the private educational institutions.
The HC also scrapped the three statutory regulatory orders for tax imposition issued by the government in 2007 and 2010 imposing 15 percent income tax on private universities and private medical, dental and engineering colleges.
On September 7 of the same year, the chamber judge of the Appellate Division, following a government petition, stayed a part of the HC verdict that scrapped government orders imposing 15 percent income tax on private institutions.
The chamber judge also halted for the HC directive that asked the NBR to refund the money collected from the institutions from 2007 as income tax under the statutory regulatory orders issued by the governments in 2007 and 2010. Yesterday (Tuesday), the Appellate Division vacated its chamber judge’s directives.
