The Appellate Division of the Supreme Court on Thursday upheld a High Court order asking the National Board of Revenue (NBR) not to collect income tax from private universities in the country.

An eight-member bench of the Appellate Division, led by Chief Justice Hasan Foez Siddique, pronounced the judgement on Thursday dismissing the review petition.

Senior Advocate AF Hasan Arif, Barrister Omar Sadat stood in the hearing on behalf of the writ petitioners.

On the other hand, Attorney General A M Amin Uddin, Additional Attorney General Sheikh Mohammad Morshed represented the state.

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 writs, the High Court on September 5, 2016 found the notifications illegal, thus ordering 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.

The Appellate Division also stayed the High Court order on refunding money to the private universities.