Government Decides to Impose 3% Education Equality Fee on Private Educational Institutions

The government has announced in the upcoming fiscal year’s budget that a 3% education equality fee will be levied on fees collected by private educational institutions. Operators of private schools and parents have demanded the cancellation of this 3% education equality fee, as it will affect 2.6 million students. Prime Minister Balen Shah stated in Parliament that due to budget constraints, it is currently not possible to provide free education and healthcare services to everyone immediately. May 31, Kathmandu.

Pramila Shrestha from Ramechhap has been working as a wage laborer to educate her son in a private school. When enrolling her son in Grade 4 at a private school in New Baneshwor, Kathmandu, she paid an annual fee of NPR 11,000 and has been paying a monthly fee of NPR 5,500. With the government imposing this equality fee, she expressed concern about the added financial burden. “I work as a wage laborer to support my son’s education. After paying the fees, how will I be able to pay an additional 3%? We simply cannot afford it,” she said.

On Friday, the government announced through the budget that a 3% education equality fee will be collected on all types of fees charged by private sector educational institutions from students. Finance Minister Swarnim Wagle stated in the budget presentation that the fee imposed at a minimum rate on education and health services provided by the private sector will help support the construction and expansion of educational and health infrastructure in remote areas. Both parents and private school operators have expressed opposition to this equality fee.

Rama Giri, a member of the Parents’ Federation, stated, “The government’s move is wrong and will impose a burden on parents. This is a decision that harms the public. Some parents earn just NPR 1,000 daily to educate their children in private schools. Those struggling to make a living cannot afford to pay this equality fee. The government needs to reconsider this decision.” Finance Minister Dr. Swarnim Wagle responded by urging people to understand the proposed 3% contribution on fees collected by private schools as a progressive tax aimed at promoting social equality.