Dhaka: The 15% Value Added Tax on private university tuition fees has been declared illegal by High Court.

A bench of judges Sheikh Hassan Arif and Bhishmadev Chakrabortty on Monday also scrapped the two government regards issued on 2007 and 2010 in this regard.

The government and the National Board of Revenue were asked to give back the amount they had realised as VAT from the universities.

Barrister Shakhawat Hossain and Advocate Shah Ashikul Murshid appeared for the petitioner while Deputy Attorney General Rashed Jahangir Shubhra argued for the state.

Shakawat Hossain said, ‘Imposition of tax on a basic right like education has been termed illegal. The two government orders are repugnant to the constitution’s 15, 17, 31 and 32 sections… The authorities were asked to give back the VAT which had already been collected.’  

The court in its verdict observed that a caretaker government was assumed to perform its routine works, but it made significant decision on vital issues like imposing VAT on tuition fees. That was completely illegal. The military-backed interim government on 28 June 2007 and NBR on 1 July 2010 issued two different orders in this regard. The government imposed 15% VAT on tuition fees.