Cabinet approves decision to scrap 3% equity tax on education, health

By A Staff Reporter, Kathmandu, July 23: The government has decided to fully waive the 3 per cent equity taxes on education and health services. 

Minister for Education and Sports and government Spokesperson Sasmit Pokharel said the decision was taken at the Cabinet meeting held on Wednesday following a proposal from the Ministry of Finance.

"Under Sub-section (1) of Section 18 of the Finance Act, 2083, the Education Equity Tax and the Health Equity Tax will be fully exempted," the Cabinet decision states. Following the approval of the tax waiving decisions, the decisions should be first published in the Nepal Gazette for their full implementation.

The levies, announced in the budget for the 2083/84 fiscal year, had come into effect from July 17. However, the government reversed the decision after the charges drew widespread public criticism.

According to the Ministry of Finance, the decision to withdraw the levies was made following extensive consultations between Prime Minister Balendra Shah and Finance Minister Dr. Swarnim Wagle.

Earlier on Tuesday afternoon, Prime Minister Shah had announced that the process to scrap the levies would be initiated.  Likewise, the government has decided to provide incentives for international airlines operating from Pokhara and Gautam Buddha International Airports, and measures to address the long-running loan sharking issues. 

According to Minister Pokharel, to encourage greater international air traffic, the government decided to grant a full waiver of parking, landing and navigation fees for scheduled international flights operating from Pokhara International Airport and Gautam Buddha International Airport until mid-September 2028. 

Airlines operating regular international services from the two airports will also receive a 50 per cent discount on ground handling charges during the same period.

The spokesperson said the Cabinet endorsed the agreement reached on July 17 between the government committee formed to address the concerns of loan sharking victims and its representatives. In line with the agreement, all fraudulent written loan documents related to illegal loan-shark transactions have been declared invalid with immediate effect.

Briefing the media after the Cabinet, the Education Minister Pokharel said the Cabinet has designated High Court Tulsipur Judge Basudev Acharya as Chairperson of the Special Court and High Court Surkhet Judge Dipendra Adhikari as Chairperson of the Labour Court.

Pokharel said the Cabinet also appointed Shailesh Raj Kunwar as Administrator of the Guthi Sansthan (Guthi Corporation).

Panel formed to probe Nepali's self-immolation 

Pokharel further announced that the Cabinet had formed a judicial inquiry committee under former High Court judge Keshav Prasad Bastola to investigate the circumstances surrounding the self-immolation incident involving Ganesh Nepali. The committee comprises former Deputy Attorney General Krishna Mohan Koirala and former Joint Secretary Ramu Raj Kadariya as members.

The meeting mandated the committee to investigate the incident and submit its report within seven days, said Minister Pokharel. Nepali, a resident of Soru Rural Municipality-1 in Mugu, died while undergoing treatment at the Burn Unit of Bir Hospital on July 10.

Following his death, the government, Kathmandu Metropolitan City and the victim's family reached a nine-point agreement. The committee has been formed in accordance with that agreement. Further, a separate DIG-level investigation committee has also been carrying out separate investigation into Nepali’s case.