PM Shah announces withdrawal of proposed equity fee on education and health services

Prime Minister Balendra Shah has withdrawn a controversial 3% equity fee on private education and health services following widespread public opposition. The proposed levy, intended to fund services for disadvantaged groups, was met with criticism that it would unduly burden citizens.

In a social media announcement, Shah stated that consultations with Finance Minister Swarnim Wagle led to the decision to postpone the fee's implementation. He acknowledged that the measure would have caused "additional costs and frustration for the general public." The prime minister emphasized the government's commitment to responding to public concerns and acting in accordance with citizens' expectations.

Initially, the equity fee aimed to improve services in remote areas, support marginalized children, expand health insurance, and generate resources. However, the strong public backlash prompted a reconsideration. Shah reaffirmed the government's existing policy requiring private institutions to reserve 10% of beds and seats for disadvantaged individuals through a transparent process. This policy seeks to enhance access to quality healthcare and education for historically underserved communities.

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Implementing the three percent equity fee on private education and health sectors as proposed would result in additional costs and frustration for the general public. Therefore, following consultations with Finance Minister Swarnim Wagle, it has been decided not to enforce the education equity fee and health equity fee for the time being.