Stakeholders have expressed dissatisfaction after the government announced to impose a three percent parity fee on all types of fees paid by service recipients in privately run educational institutions and health institutions. They have commented that the additional tax is being imposed instead of making education and health free, which are provided for as fundamental rights by the constitution.

Finance Minister Swarnim Wagle had announced a 3 percent tax on students studying in private educational institutions (schools/colleges) and patients receiving treatment in private hospitals through the financial bill. Parents, student organizations, private educational institutions, health institution operators, and consumer rights activists have urged the government to reconsider this decision.

The government is trying to thwart civil rights by imposing unnecessary taxes on essential items like education and health, the government should reconsider the decision: Madhav Timilsina, President, Consumer Rights Research Forum Consumer Rights Research Forum President Madhav Timilsina accused the government of trying to thwart civil rights by imposing unnecessary taxes on essential items like education, health, and electricity. 'The Constitution has taken education and health as fundamental rights. Instead of ensuring the rights of the people, the government has taken away civil rights by imposing taxes against the Constitution,' he said. He also urged the government to reconsider the decision.

The Constitution has made provision for free education up to secondary level and basic treatment. Stakeholders complain that education and health will become more expensive for citizens when the government implements the tax. The bill states that 'education parity fee will be levied at the rate of three percent on all types of fees charged by private educational institutions from students.' This includes private schools, colleges, technical schools, medical and engineering colleges.

It is mentioned that health parity fee will be levied at the rate of three percent on all types of service fees charged by private health service providers from patients. The tax will be spent on quality education, expanding access to health, and building infrastructure. The bill provides that such fees should be invoiced and collected and submitted through the Internal Revenue Office after collection. According to the bill, if the tax amount is not paid every quarter, a fine will be imposed.

The government has adopted a policy of cutting the budget in public education and imposing the burden of education on parents, the decision to collect taxes from parents of private schools is unacceptable: Keshav Puri, President, Nepal Parents' Federation Nepal Parents' Federation President Keshav Puri complained that the government has adopted a policy of cutting the budget in public education and imposing the burden of education on parents. 'The government's move that came to say that it will change has also been seen. No matter which government comes, the education and health sectors have been neglected. This government has not been able to allocate as much budget as the previous governments,' he said, 'It has reduced the education budget. It has not spoken about community school reform. It has also decided to impose taxes on parents who are forced to go to private schools. This is unacceptable.'

Puri, President of the Parents' Federation, claimed that the government is trying to collect fees by working with them rather than regulating private schools. Even though a budget of 2018 billion has been allocated for education for the coming fiscal year, this is less than the current year.

Dr. Padam Khadka, president of the Association of Private Health Institutions Nepal (AFIN), an organization of private hospital operators, criticized the government for trying to provide relief to the people by imposing taxes. 'The government has asked the patient to pay an additional fee of Rs 3,000 for treatment of Rs 1 lakh. The state tried to collect money by making us agents. A new system of governance has begun to collect as much tax as possible from the people,' he said. He accused the private hospital and educational institution operators of trying to make the state more expensive instead of 'give us an environment, provide education and health at a low price'.

The government has asked the patient to pay an additional fee of Rs 3,000 for treatment of Rs 1 lakh, and the state tried to collect money by making us agents: Dr. Padam Khadka, president, Association of Private Health Institutions Private school operators also expressed dissatisfaction with the system of imposing a 3 percent educational tax on private schools and campuses. PABSON, N-PABSON and HISAN have said that they will make a common collective opinion on this. Speakers at the third general convention of the Association of Pre-School Educators Nepal (APEN) held in Kathmandu on Saturday said that the tax has discouraged and distressed the private education sector.

N-PABSON President Subash Neupane said that it is unfortunate that a country has become a taxing country in the education sector despite high hopes from the new government. He said, ‘We did not think that such a decision would come from the considered sophisticated policy makers.’ The policy system of having to update the details every 4-4 months and paying a 15 percent penalty if not paid has put the private education sector in a very difficult situation.’

HISAN General Secretary Ramhari Silwal complained that it is ironic that despite a strong government in the country, confusion and instability persist in the education sector. ‘When the education budget has not increased, private educational institutions have been strangled by imposing a 3 percent tax,’ he said. APN President Badri Prasad Dahal commented that the current government appears to be lenient towards the private educational sector. He complained that such behavior of the state will discourage private investment and put the entire educational sector at further risk.

At the program, PABSON General Secretary RB Katuwal, N-PABSON General Secretary Prakash Khadka, Kathmandu University Associate Dean Professor Binod Prasad Panta, Nepal National Schools Federation Rajkumar Karki and educational figure Sanu Amatya also criticized the government’s policy arrangement, saying that it will have a long-term negative impact on the education sector.

The UML-affiliated ANNFSU has demanded that the government withdraw the decision to levy a parity tax on education. ANNFSU President Deepak Dhami issued a statement on Saturday demanding that the arrangements that impose additional financial burden on parents be scrapped. ‘The effective implementation of the fundamental right to education as provided by the constitution should be ensured by allocating sufficient budget in the education sector,’ he said. ‘The state should establish education as a civil right, not a business.’