Government Scraps 3% Equity Tax on Private Education and Health Following Public Backlash
साउन ५, २०८३ १७:१०
Kathmandu. The government has decided to withdraw the 3 percent equity tax imposed on private education and health services for the current fiscal year 2083/84, following widespread public criticism. Prime Minister Balendra Shah (Balen) announced the decision through a social media post on Tuesday.
The equity tax, introduced through the current fiscal year's budget, would have added a 3 percent levy to fees charged by private schools, colleges, and healthcare institutions. The measure drew strong opposition from parents, students, healthcare users, and various organizations, who argued it would increase the financial burden on ordinary citizens.
Critics questioned the rationale behind taxing private education while government schools and campuses continued to face concerns over quality. Organizations including the Nepal Student Union (NSU) and the Parents' Association of Nepal had called for the tax to be withdrawn.
The proposal also faced backlash over its impact on healthcare costs. Many social media users argued that government hospitals already lacked the capacity to handle patient demand, while imposing an additional tax on private healthcare would further increase treatment costs for the public. Others said the measure would disproportionately affect middle-income and low-income families.
The government also faced criticism for introducing the tax while simultaneously considering a reduction in the scope of the national health insurance programme. Experts argued that imposing additional costs on education and healthcare undermined citizens' constitutional right to access both services.
Announcing the decision, Prime Minister Shah acknowledged that retaining the tax would have imposed additional financial pressure on the public. He said the government decided to suspend implementation of both the Education Equity Fee and the Health Equity Fee after consultations with Finance Minister Swarnim Wagle.
According to the Prime Minister, the equity tax had been designed to raise resources for improving education and healthcare services in remote and underdeveloped areas, expanding health insurance coverage, supporting Dalit, marginalized, and economically disadvantaged children, and broadening the country's tax base.
"The government's attention has been seriously drawn by the public's response to the equity tax," Shah said, adding that the administration remains prepared to revise its decisions whenever there is significant public dissatisfaction.
He also said the government will move ahead with a policy requiring private hospitals to reserve 10 percent of beds and private campuses and universities to allocate 10 percent of seats for disadvantaged and low-income groups to improve their access to quality education and healthcare.
पछिल्लो अध्यावधिक: साउन ५, २०८३ १७:१०
