The Association of Private Universities of Bangladesh (APUB) has expressed deep concern over the government’s failure to withdraw the existing 10 percent income tax on private universities in the proposed national budget for 2026-27, urging authorities to reconsider the decision.
In a press release on Sunday, the association said that despite providing detailed explanations to policymakers and regulatory authorities prior to budget formulation and receiving positive assurances, those assurances were not reflected in the budget proposal.
Private universities are required to pay significant amounts of VAT and taxes for infrastructure development, purchasing laboratory and library materials, and receiving various services, the association said.
“If the 10 per cent income tax remains, development, expansion, and quality improvement activities will be disrupted. Additional financial pressure will be created on students, which will increase the cost of higher education,” the press release stated.
According to the Private University Act 2010, private universities operate as non-profit institutions. The association argued that imposing income tax on these institutions is inconsistent with the policy position of non-profit higher education institutions and raises questions in the international arena.
The press release noted that the current government’s election manifesto mentioned increasing allocations to the education sector and keeping private universities tax-exempt.
“Although a 2 per cent of GDP allocation to the education sector has been proposed, no increase in higher education and research allocation has been observed, and the tax on private universities remains,” it said.
APUB made a strong demand to the Ministry of Education, UGC, Ministry of Finance, NBR, and relevant policymakers to withdraw the income tax.
“Investment in the education sector is not an expense; it is one of the most important investments in creating skilled human resources, enhancing national capacity, and building the country’s future,” the association said.
