Government promises education, health tax refunds within 50 days

The Nepali government has officially scrapped a 3% equity tax levied on education and health services, a move that came into effect on July 17. The Cabinet formally decided to withdraw the tax on Wednesday, responding to significant public outcry.

Officials have also pledged to refund all duties collected from citizens over the past week directly into their bank accounts within 50 days. The Ministry of Finance is tasked with overseeing this refund process. "The Cabinet's decision is sent to the finance ministry for implementation," stated Dipa Dahal, Press and Research Expert to Prime Minister Balendra Shah. "The finance ministry will initiate all necessary procedures to execute the order."

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The Cabinet's decision is sent to the finance ministry for implementation. The finance ministry will initiate all necessary procedures to execute the order.

The tax, introduced through the current fiscal year's Financial Act, had sparked widespread public criticism. Prime Minister Shah had initially announced the tax withdrawal on social media on Tuesday, prompting the formal Cabinet decision. The Prime Minister's Office will instruct the finance ministry to process refunds, with funds to be deposited into the government's consolidated fund if individuals fail to claim them or if technical issues arise.

Finance Minister Swarnim Wagle confirmed the tax suspension, noting that a proposal for withdrawal has been prepared and awaits Cabinet approval. This decision aims to address public concerns, though some uncertainty remains regarding the exact implementation and refund process until the Cabinet formally resolves the matter.

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The proposal for the withdrawal of the tax has been prepared and it will be implemented after Cabinet approval. The issue of refunds will also depend on the Cabinet’s decision. If the Cabinet decides to return the collected amount, taxpayers will receive refunds. Otherwise, it will remain with the government.