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.
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 act.
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 teachers and staffers and paying house rent remain uncertain.
Amid the situation, imposing 15 percent tax on income of private universities might end up in closure of some newly-established institutions, he said.
Kabir Hossain urged the government for not imposing income tax on private universities.