Refunds uncertain after government rolls back equity tax on education and health services

Summary

The government has rolled back the 3% parity tax on education and healthcare services but the legality of the rollback and refunds of collected tax remain uncertain pending Cabinet approval.

Key Points
  • The government has suspended the 3% parity tax on education and healthcare services following public criticism.
  • The tax rollback was announced by Prime Minister Balendra Shah but requires Cabinet approval and Nepal Gazette publication to take legal effect.
  • There is uncertainty about whether taxpayers will receive refunds for the amount already collected under the tax.
  • The government plans to continue policies ensuring private hospitals reserve beds and educational institutions allocate seats for underprivileged citizens.
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