Year
2026
Reform Domain
Manifesto Watch
Education
Source of Reform Proposals
Election Manifesto of Bangladesh Nationalist Party - BNP
Reform Proposed
Reform Initiated
Legal and Policy Framework
Operationalisation
Action Implementation
Stage of Implementation
Reform Proposed
Last Update: 10-Sep-26
This pledge has been articulated in the Bangladesh Nationalist Party’s (BNP) election manifesto for Bangladesh’s 13th National Election. The manifesto stated that "Treating private universities as non-profit institutions, education provided and received there will be made income-tax exempt in the interest of expanding education”.
Reform Initiated
Last Update: 10-Sep-26
On 29 June 2026, the Prime Minister proposed reducing the existing 10% tax on private universities to 5%. It was expected that the tax benefit would help increase research investment, language education and language labs, and expand tuition-free opportunities for poor and meritorious students.
Legal and Policy Framework
Last Update: 10-Sep-26
The Finance Act 2026 reduced the applicable income-tax rate from 10% to 5% for private universities, private medical colleges, private dental colleges, private engineering colleges and private IT colleges, effective from FY2026-27.
Operationalisation
Last Update: 10-Sep-26
The National Board of Revenue (NBR), through the Income Tax Circular 2026–2027, specified that income from private universities will be subject to income tax at a rate of 5 per cent. The rate is applicable for the 2026–2027 to 2030–2031 tax years.
Observation
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The reduction in the income tax rate for private universities is a positive step towards the manifesto commitment of full income tax exemption. The applicable corporate tax rate has progressively declined from 15 per cent before FY2025-26, to 10 per cent under the Interim government, and then to 5 per cent under the Finance Act, 2026. While this represents a significant tax concession, it does not yet amount to the full income tax exemption committed in the BNP election manifesto. It should be monitored whether the tax benefit has resulted in an increase in research investment, language education and language labs, and expanded tuition-free opportunities for poor and meritorious students.