Online Desk: The Supreme Court has ordered private universities in Bangladesh to pay a 15 per cent tax on their earnings.

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

Attorney General AM Amin Uddin stood for the state, while senior advocate AF Hassan Ariff appeared for the petitioner.

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

The NBR also issued another notice on July 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 per cent.

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

On February 9, 2021, the Appellate Division agreed to hear an 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 per cent tax rate.