Education Service Tax in Nepal
There is hardly anything to tax in Nepal and they have recently introduced an education tax, which was promptly challenged in the Supreme Court. Prime Minister Pushpa Kamal Dahal 'Prachanda' yesterday stated that the decision of the government to levy education tax on private schools was not against the government's policy of free education.
The PM stated that as only the children of higher class people study in private schools, the tax would not hit the lower class people. "The government will allocate a budget for the public schools to ensure free education to the children in the remote areas after collecting the five per cent of EST from private schools," he added.