Fiscal Nepal
First Business News Portal in English from Nepal
health education charge
KATHMANDU – The Government of Nepal has introduced a new 3 percent tax on fees charged by private schools and private healthcare institutions, under the Economic Bill 2083, targeting services provided by private education and health sectors.
The provision, announced through the Finance Bill presented by Finance Minister Dr. Swarnim Wagle, introduces two new levies—Education Equity Charge and Health Equity Charge—aimed at mobilizing resources for infrastructure development in the social sectors.
Under the new rule, all fees collected by private educational institutions will be subject to a 3 percent Education Equity Charge, while private hospitals and healthcare providers will also be required to pay a 3 percent Health Equity Charge on service fees charged to patients.
According to the bill, the collected revenue will be used to improve access to quality education, strengthen educational infrastructure, and enhance healthcare services and facilities.
The Economic Bill states:
Private educational institutions must collect a 3 percent Education Equity Charge on all student fees as per Schedule 8.Private healthcare providers must collect a 3 percent Health Equity Charge on all medical service fees as per Schedule 9.
The bill defines private educational institutions broadly, including schools, colleges, universities, and technical training institutes operated by the private sector.
Similarly, private healthcare providers include hospitals, clinics, and other medical service institutions operating under private ownership.
The law clearly states that institutions operating under public educational trusts will be exempt from the education equity charge.
All institutions are required to issue invoices and collect the charge at the source. The collected amount must be submitted to the Inland Revenue Office on a quarterly basis within 25 days after each fiscal quarter ends, along with detailed reporting.
The government says the new levy is designed to ensure equitable financing for education and health infrastructure development, while expanding access to quality services.
Officials argue that the measure will help redistribute resources from high-fee private service providers toward broader social development goals.
While the government frames the tax as a “social equity mechanism,” the move is expected to increase the cost burden on consumers using private schools and private healthcare services, potentially raising overall service fees in both sectors.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
