Staff Reporter :
The Association of Private Universities of Bangladesh (APUB) has urged the relevant authorities not to enforce taxes on private universities until legal complexities are resolved.
Additionally, they have called for the immediate reopening of all suspended bank accounts of universities before the Eid festival.
“We humbly request the authorities not to enforce taxes on private universities until legal issues are resolved.
We have also observed the suspension of bank accounts of private universities.
We urge the concerned authorities to revoke this measure and promptly reopen all bank accounts before Eid,” said APUB Chairman Sheikh Kabir Hossain in a statement released on Sunday.
While a court verdict has been issued regarding the dismissal of appeals related to the payment of income tax at a rate of 15 percent on private universities, APUB noted that the detailed order of the Appellate Division’s observation has not yet been published.
Despite this, the National Board of Revenue has sent tax payment demand letters to various private universities, resulting in the suspension of bank accounts for several institutions.
APUB criticised the suspension of bank accounts just before the holy festival of Eid-ul-Fitr, calling it an inhumane step, particularly as it would hinder the payment of salaries to teachers, staff, and employees, as well as clearing other outstanding bills.
The association reiterated its commitment to conducting all activities of private universities in accordance with existing laws.
They expressed extreme anxiety and concerns among private universities due to the suspension of bank accounts by the National Board of Revenue without receiving the full court verdict.
Highlighting the financial challenges faced by private universities, APUB noted that these institutions do not receive government grants and rely solely on student tuition fees.
They also contribute significantly to VAT and taxes through various expenditures.
Following the pandemic, many private universities are struggling to cover daily operational expenses, with new universities relying on support from trustee board members.
There is a growing concern that imposition of taxes may lead to closures of many private universities.
Quoting provision 44(7) of the Private University Act, 2010, APUB argued that utilising the general fund of the University for Purposes other than university expenses conflicts with the act.
In light of these circumstances, APUB called for discussions between concerned authorities and university stakeholders to resolve conflicting provisions of the Private University Act and tax laws.
