Govt withdraws 3 pc equity tax on private education, health providers

KATHMANDU: The government has withdrawn 3% equity tax on private education and health providers, Prime Minister Balendra Shah announced on social media on Tuesday.

PM Shah said the measure appeared to impose extra costs and cause frustration for ordinary people and that, after consultation with Finance Minister Swarnim Wagle, the equity tax will not be implemented for now.

“This government is people-centred, based on the trust and expectations of the people. Our main goal is to establish good governance and ensure that all citizens experience a quality life,” Prime Minister Shah said.

He said the tax had been introduced to fund improved education and health services in remote and underdeveloped areas, to support Dalit, marginalised and needy children, to expand health insurance, and to mobilise the necessary financial resources for those aims. The provision was also intended to broaden the tax base and make the economy more organised, he added.

The Prime Minister acknowledged public reaction to the equity tax and said the government remained committed to listening to citizens and building an equitable society. “The government's decisions have been and will be made with the citizens' interests at the centre. If citizens are dissatisfied with any decision, the government will always be ready to make improvements and modifications,” he said.

Shah reiterated the government’s commitment to a policy ensuring that 10% of beds in private hospitals and 10% of seats in private campuses and universities are made transparently and fairly available so that underprivileged and poor citizens can access quality education and health services.

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