Nepal's Government Scraps Controversial 3% Equity Tax on Education and Health Sectors

Nepal's Decision to Revoke the Equity Tax

Kathmandu: On Wednesday, the government of Nepal officially decided to eliminate the 3% equity tax that was levied on the private education and healthcare sectors, a move that came after significant public backlash.

The Council of Ministers approved Finance Minister Swarnim Wagle's proposal to abolish the 3% Education and Health Equity Fee, as outlined in Section 18(1) of the Finance Act, 2083, according to sources within the cabinet.

The Cabinet has fully endorsed the removal of this tax.

This decision to revoke the tax was prompted by increasing public discontent regarding the recently imposed charge.

In a statement on social media, Prime Minister Balendra Shah announced that the government has opted not to enforce the equity tax on the private education and health sectors at this time.

This 3% tax was introduced last month as part of the budget for the new fiscal year and was set to take effect from July 17.

Shah explained that the tax was intended to broaden the tax base and enhance economic organization. However, in light of public feedback, the government has chosen to halt its implementation.