File photo of the entrance to North South University in Dhaka Mahmud Hossain Opu / Dhaka Tribune
The tax will negatively impact private universities and increase the cost of education for students, APUB said in a statement
Administrators of private universities have urged the prime minister to withdraw the 15% income tax on universities.
In a statement on Saturday, the Association of Private Universities of Bangladesh (APUB) said the taxation of income from private universities, which are non-profit organizations and operate as a trust, is “inconsistent” with the law. of 2010 on private universities.
Imposing the same amount of income tax on private universities as profitable private medical and engineering schools is against the law, APUB chairman Cheikh Kabir Hossain said.
Private universities contribute to the development of higher education in Bangladesh. They have a remarkable contribution to reducing the number of students who go to study abroad, thus saving foreign currency as well as the brain drain deduction, according to the statement.
In addition, many foreign students come to Bangladesh for higher education and Bangladesh earns foreign exchange, he said.
During the Covid-19 pandemic, many private universities are facing a financial crisis. The management of teachers’ salaries, employees and rents for university buildings has become uncertain, according to the APUB press release.
In this situation, all stakeholders, including students and their tutors, are concerned about imposing the 15% income tax on private universities, he said.
The tax will negatively impact private universities and increase the cost of education for students, the president said.
The budget for fiscal year 2021-2022 imposed a 15% tax on private universities and colleges of medicine, dentistry and engineering, including those that offer computer training.
In 2015, the government imposed a 7.5% value added tax (VAT) on tuition fees for private universities, medical and engineering schools, which was, however, removed after days of student protests .