The Appellate Division of the Supreme Court has directed the authorities of private universities to submit 15 percent income tax.

The Applleate Division bench led by Justice Borhan Uddin passed the judgement on Tuesday dissolving a writ petition filed by 46 universities challenging the government decision of 15% tax imposition.

Attorney General AM Amin Uddin moved for the state during the hearing while senior lawyer AF Hasan Arif appeared for the petitioner.

Earlier, in June 2023, the SC upheld the order of the Appellate Division to refrain from collecting income tax from private universities until the appeal is resolved.

At the same time, the SC also upheld the order of conducting the final hearing of 46 writs, filed by various private universities regarding income tax collection, in the High Court.

Earlier, the National Board of Revenue (NBR) issued a gazette notification on June 28, 2007, imposing the 15% income tax on private universities, to be effective from July 1 that year.

In another gazette notification, the NBR imposed the same 15% income tax on private universities, medical, engineering colleges and ICT institutes.

After that, different universities filed 46 writs challenging the government decision.

Upon the final hearing on the writ petitions, the High Court on September 5, 2016, found the notifications illegal, and ordered the NBR to refund the money realized in line with the government circulars.

Subsequently, the state pleaded to be allowed to file a leave to appeal with the apex court, which was finally granted on February 9, 2021.