Kathmandu: The government has decided to scrap the controversial 3 per cent tax previously imposed on health and education services. Prime Minister Balen Shah announced that the levy on private institutions will no longer be implemented, following a wave of public concern regarding the financial burden it would place on ordinary citizens. This reversal comes after the tax faced significant criticism since its introduction in the recent budget.
In a statement shared via social media on Tuesday, Prime Minister Shah explained that enforcing the 3 per cent “equity fee” in its proposed form would lead to increased expenses for the public and fuel widespread disappointment. He noted that after thorough consultations with Finance Minister Dr Swornim Wagle, the administration decided to suspend the collection of both the Education Equity Fee and the Health Equity Fee. The Prime Minister emphasized that his administration is a people-centric government built on public trust, with a primary mission to maintain good governance and ensure a high quality of life for all citizens.
The tax was originally proposed by Finance Minister Dr Swornim Wagle during the budget presentation for the fiscal year 2083/84. While the tax has been withdrawn, the government maintains its commitment to ensuring that underprivileged and poor citizens can still access high-quality services. Prime Minister Shah reiterated that the government remains dedicated to enforcing policies that require private hospitals to reserve 10 per cent of their beds and private colleges to allocate 10 per cent of their seats for the needy transparently and fairly.
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