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🇳🇵 Nepal /Culture & Society

Nepal withdraws proposed equity fees on private education and health services

From Kathmandu Post · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Nepal's Prime Minister Balendra Shah announced the withdrawal of proposed three percent equity fees on private education and health services.
  • The decision follows discussions between the prime minister and the finance minister, who stated the fees would have burdened the public.
  • The government is drafting an executive order to establish an Equity Fund with alternative revenue sources, as the suspended fees were intended to finance nutrition and health programs.

Nepal's government has decided to suspend the implementation of proposed three percent equity fees on private education and health services, a move announced by Prime Minister Balendra Shah on social media. The prime minister stated the levy would have increased the financial burden on the public.

The proposal to suspend the fees has been prepared for the Cabinet.

— Swarnim WagleFinance Minister Swarnim Wagle confirming the process for the fee withdrawal.

Finance Minister Swarnim Wagle confirmed that a proposal to suspend the fees has been prepared for the Cabinet. He explained that the provision was introduced under Section 18 of the Financial Act and that the decision to suspend it was made after a consultation with the prime minister. Wagle noted that the fees were part of a broader concept for an Equity Fund, intended to finance nutrition programs for marginalized children, expand health insurance, and improve public educational institutions.

In a parliamentary system with a strong prime minister, what the prime minister says is final.

— Swarnim WagleFinance Minister Swarnim Wagle on the decision-making process involving the prime minister.

While revenue from these specific fees will no longer be part of the Equity Fund for the time being, the government is exploring alternative funding sources. An executive order is being drafted to establish the fund, similar to a previous Reconstruction Fund. The finance minister indicated that the decision to suspend the fees was a mutual one, made in consultation with the prime minister, who holds the final say in Nepal's parliamentary system.

Yes. The necessary policy decision will be taken.

— Swarnim WagleFinance Minister Swarnim Wagle confirming the Cabinet's formal endorsement of the decision.
DistantNews Editorial

Originally published by Kathmandu Post in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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