Owners of the private universities on Friday said the proposal of imposing 15 percent income tax on private universities in the proposed budget for 2021-22 fiscal year is unacceptable and it is against the Private University Act, 2010.
Association of Private Universities of Bangladesh (APUB) in a statement issued by its Chairman Sheikh Kabir Hossain said the proposed 15 percent income tax on private universities has created concern among all stakeholders, including students and their guardians.He said private universities are non-profit organisations and operate as a trust in line with the Private University Act 2010, so the tax on the universities is not acceptable and against the law.
Finance Minister AHM Mustafa Kamal on Thursday placed the budget for 2021-22 FY in the parliament where the minister proposed 15 percent tax on private universities, and private medical, dental and engineering colleges, including the ones offering IT education.
Kabir Hossain said many private universities are facing financial crisis amid the Covid-19 pandemic while providing salaries for many teachers and staff and house rent of the private universities are uncertain.
Amid such situation, imposing of 15 percent tax on income of private universities might end up in closure of some newly established private universities, he said
Kabir Hossain urged the government for not impose the income tax and declare stimulus packages for the private universities which are facing financial crisis due to the pandemic.
Private universities are helping expansion of higher education in Bangladesh. There are 107 approved private universities in the country with about five lakh students.The private universities have remarkable contribution in reducing students going abroad for study thus saving of foreign currency as well as brain drain, said the statement.