Prime Minister Balendra (Balen) Shah has announced the immediate suspension of the newly proposed 3% equity fee on private education and healthcare services following widespread public concern and pushback from service providers.
The decision was finalized after high-level consultations between Prime Minister Shah and Finance Minister Dr. Swarnim Wagle. The 3% levy, introduced in the national budget for the upcoming fiscal year, aimed to collect funds from private schools, colleges, and medical facilities to subsidize public education and healthcare in remote areas. However, critics and umbrella organizations argued the cost would inevitably pass down to students, parents, and patients.
Addressing the public, Prime Minister Shah stated that enforcing the fee as originally designed would impose unintended financial distress on citizens. He emphasized that the government remains committed to citizen welfare and will modify policies whenever public sentiment warrants adjustment.
To support underprivileged groups, the administration reaffirmed its commitment to strictly enforce existing welfare provisions, including the mandatory 10% quota for free services in private hospitals and 10% scholarship seat reservations in private educational institutions.