Kathmandu: The Government of Nepal has introduced a new taxation measure affecting citizens who utilize private education and healthcare services.
Through the Finance Bill of 2026, the government has implemented the “Education Equity Fee” and the “Health Equity Fee” as part of its strategy to mobilize resources for public welfare.
According to the bill, these levies are intended to fund improvements in the quality of public services and to support the construction of essential educational and medical infrastructure across the country. Finance Minister Dr Swarnim Waglé unveiled these provisions during the budget presentation, marking a significant shift in how the state generates revenue from the private service sector.
Under the new Health Equity Fee, private healthcare providers are now mandated to collect a 3 percent tax on all types of service charges paid by patients. This fee must be explicitly mentioned in the invoices issued by the hospitals or clinics. The government has established a strict compliance timeline, requiring these institutions to submit the collected tax, along with detailed transaction records, to the Inland Revenue Department every four months. These submissions must be completed within twenty-five days following the end of each trimester to avoid penalties.
Similarly, private educational institutions—including universities, colleges, schools, and technical institutes—must now levy a 3 percent “Education Equity Fee” on all types of fees collected from students. The legislation clarifies that this tax applies to any private entity providing educational services, though institutions operating under public educational trusts are specifically exempted from this requirement.
Like the healthcare providers, private schools and colleges are responsible for invoicing the fee and ensuring that the revenue is reported and deposited with the tax authorities on a four-monthly basis. Through these measures, the government aims to balance the growth of private enterprises with the need for enhanced investment in the nation’s public service foundations.
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