Government Decides Not to Implement 3% Equity Tax on Education and Healthcare

Prime Minister Balen Shah has announced that the 3 percent equity tax imposed on the private education and healthcare sectors will not be implemented for the time being.

Taking to social media on Tuesday, Prime Minister Shah said the government had decided not to enforce the education equity fee and healthcare equity fee after consultations with Finance Minister Swarnim Wagle.

He said the implementation of the 3 percent tax as currently proposed could increase the financial burden on ordinary citizens and lead to further disappointment.

The implementation of the 3 percent equity tax on the private education and healthcare sectors as currently proposed could impose additional costs on the general public and cause frustration. Therefore, following consultations with Finance Minister Swarnim Wagle, it has been decided not to implement the education equity fee and healthcare equity fee for the time being, Shah said.

According to Prime Minister Shah, the 3 percent equity tax was proposed to generate resources to provide quality education and healthcare services to citizens in remote and disadvantaged areas.

The tax was also intended to support Dalit, marginalized and economically disadvantaged children, expand health insurance coverage and broaden the tax base to make the economy more systematic.

However, Shah said the government's attention had been drawn to the public response and dissatisfaction regarding the proposed equity tax. He said the government would continue to listen to citizens and remain committed to building a more equitable society.

Prime Minister Shah said the government was formed based on public trust and expectations and was committed to maintaining good governance while ensuring a better quality of life for all citizens.

He said all government decisions had been and would continue to be guided by the interests of the people. “The government is always ready to improve and amend any decision if citizens are dissatisfied with it,” Shah said.

The government has also reiterated its commitment to implementing a policy to reserve 10 percent of beds in private hospitals and 10 percent of seats in private colleges and universities for economically disadvantaged and poor citizens, ensuring that they receive quality healthcare and education through a transparent and equitable process.