The High Court (HC) yesterday issued a rule upon the government to explain why imposing 15 percent income tax on private universities and medical and dental colleges should not be declared illegal.
The rule is returnable within two weeks.
The court also stayed a notice, for two months, issued by National Board of Revenue (NBR) upon the North South University (NSU) to pay 15 percent tax in advance from its yearly income.
A bench of the High Court comprising Justice Md Ashfaqul Islam and Justice S M Emdadul Hoque passed the orders following a Writ petition filed by NSU.
On July 15 last, the finance ministry issued a circular asking country's private universities, medical colleges and dental colleges to pay 15 percent tax on their yearly income.
Following the notification, NBR on September 2 issued a notice upon NSU to pay its tax.
Later, NSU filed the Writ with the HC challenging legality of the NBR notice.
The HC after holding hearing on the Writ passed the orders.
Advocate Sakhawat Hossain appeared for NSU.