3 Percent Education Equality Fee Imposed on Private School Students Sparks Opposition from Parents and Operators

May 29, Kathmandu – The government has announced through the budget that a 3 percent Education Equality Fee will be charged on all types of fees collected from students attending educational institutions operated by the private sector. In the budget presented on Friday by Finance Minister Swarnim Wagle, it was stated, “To support the construction and expansion of education and health infrastructure and services in remote areas, a minimum rate of equality fee will be imposed on education and health services provided by the private sector.”

According to Section 16 of the bill enacted to implement the government’s financial proposal, an education equality fee will be levied on all types of fees collected by privately operated educational institutions as per Schedule 7. The revenue generated from this fee will be allocated to expanding access to quality education and building educational infrastructure. The clarification explains, “For the purpose of this section, ‘privately operated teaching institutions’ refer to any bodies providing education, including private universities, colleges, schools, technical institutes, except those offering training and refresher courses.”

Private schools have opposed the imposition of this equality fee. School operators and parents have urged for its immediate repeal, arguing that it should not be implemented. Subas Nyaupane, president of the Nepal Private and Boarding Schools’ Association (NPABSON), said, “The equality fee imposes an additional burden on private schools. Charging an extra 3 percent tax on every fee will create hardships for parents. We strongly condemn this provision.” He further stated that this fee could result in injustice to the public rather than development in the education sector.

Former president of the Parents Association, Suprabhat Bhandari, expressed, “Taxing education is not appropriate; taxes should be imposed on income. Fees are paid by students and parents, so taxing the cost of attending school is unreasonable.” He added, “The constitution ensures free and compulsory education, hence equality fees should not be levied.” Meanwhile, Ministry of Education spokesperson Shiv Kumar Sapkota requested that the education equality fee be viewed as a social responsibility. He said, “This is like a Corporate Social Responsibility (CSR). A procedure will be established for its implementation.”