Equity Fee in Education to Take Effect Tomorrow, Adding Financial Burden on Parents of 2.6 Million Students

The government is set to implement a 3 percent equity fee on students enrolled in private schools starting from the 1st of Shrawan. Finance Minister Dr. Swarnim Wagle has stated that the collected funds will be allocated to improving education and nutrition for children in remote areas. While private school operators and parents have protested, citing constitutional rights and additional financial burden, the government has justified this as a progressive tax.

The equity fee imposed on education will come into effect tomorrow, Friday. The budget for the fiscal year 2083/84 introduced a 3 percent equity fee, which will now be applied beginning Shrawan 1. This measure will place extra financial pressure on guardians of more than 2.6 million students studying in private schools. According to the Public Finance Act, all fees collected by privately-run educational institutions from students will now incur this 3 percent equity fee imposed by the government.

Finance Minister Dr. Swarnim Wagle explained that the funds raised through this fee will be used to support the education of students in remote areas. Following the announcement of the equity fee, both parents and private school operators have voiced opposition to the tax. Government data shows that there are 8,941 private schools nationwide, with a total enrollment of 2,657,170 students.

The government plans to collect the equity fee at a 3 percent rate from the fees paid by all these students. Minister Wagle described the equity fee as a progressive tax, stating that parents who pay a monthly fee of NPR 2,000 will need to pay an additional NPR 60 only. The revenue generated will be used through the established Equity Fund aimed at enhancing the nutrition of Dalit children in remote areas. Although the constitution mandates free education, the imposition of this fee on constitutional rights has also sparked opposition within parliament.