Govt lowers tax rate for private universities, medical colleges

The interim government has reduced the corporate tax rate from 15 percent to 10 percent for private universities, medical colleges, engineering colleges, and institutions exclusively offering ICT education.

The revision was approved today as part of the Finance Bill 2025 and the Tk 790,000 crore budget for fiscal 2025-26, according to a statement from the finance ministry.

The bill was cleared at a meeting of the advisory council chaired by Chief Adviser Muhammad Yunus.

Previously, the Finance Bill unveiled on June 2 had proposed maintaining the 15 percent corporate tax rate for these institutions.

In a separate measure, the government has reduced the withholding tax on property transfers.

The existing rates of 8 percent, 6 percent, and 4 percent have been brought down to 5 percent, 3 percent, and 2 percent, respectively.

Additionally, the advance tax on imports of refined petroleum products has been slashed from 7.5 percent to 2 percent.