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ECONOMY

3% levy on private schools and hospitals raises questions on cost of education and healthcare

Introduced through the Economic Bill 2083 by Finance Minister Dr. Swarnim Wagle in Parliament on Friday, the provision requires citizens to pay an additional charge when paying fees at private schools and when receiving treatment at private hospitals and healthcare providers.
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By REPUBLICA

KATHMANDU, May 30: The government’s new 3% “equity fee” on private education and healthcare services is set to add a fresh layer of cost for users, while raising questions about affordability and access in two of the country’s most essential sectors.



Introduced through the Economic Bill 2083 by Finance Minister Dr. Swarnim Wagle in Parliament on Friday, the provision requires citizens to pay an additional charge when paying fees at private schools and when receiving treatment at private hospitals and healthcare providers.


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Under the new arrangement, private educational institutions—including schools, colleges, universities and technical institutes—will be required to collect a 3% “education equity fee” on all student fees. The government says the revenue will be directed towards improving access to quality education and strengthening educational infrastructure.


A similar 3% “health equity fee” will be applied to all service charges collected by private healthcare providers from patients. According to the Bill, the funds will be used to expand access to quality healthcare and upgrade health infrastructure.


The Bill specifies that both fees must be collected through invoices issued by the respective institutions, with the collected revenue deposited to the Inland Revenue Office every four months within 25 days after the end of each period.


Public educational institutions operated under trust arrangements will be exempt from the education equity fee.


While the government frames the measure as a mechanism to redistribute resources and invest in public goods, the move is expected to have a direct impact on households already bearing high out-of-pocket costs in private education and healthcare.

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