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ECONOMY

3 pc VAT on private schools’ fees earmarked for inclusive education facility: FinMin Wagle

Finance Minister Swarnim Wagle has urged that the proposed three percent contributions in the fees charged by private schools must not be considered as an additional burden on the middle class, as the funds will be aimed for promoting an ‘equity fund.’
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By REPUBLICA

KATHMANDU, May 31: Finance Minister Swarnim Wagle has urged that the proposed three percent contributions in the fees charged by private schools must not be considered as an additional burden on the middle class, as the funds will be aimed for promoting an ‘equity fund.’



Speaking at a press conference held at the Ministry of Finance on Sunday, Wagle urged the extra tax as a progressive tax to promote social equality. He gave an example that parents paying Rs 2,000 per month in ordinary private schools will have to pay only Rs 60 extra.


According to Wagle, the fund to be established will be mobilized to improve the nutrition of Dalit children in remote areas. “The amount raised will be used to improve the nutritional diet of Dalit children in districts like Jajarkot, Dailekh, and Mugu.”


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While acknowledging that there is no provision in the public finance system for spending money only on a specific heading, he clarified that the resources raised from the Equity Fund have been arranged in such a way that they will be focused on the nutrition of children from deprived communities.


The government's long-term goal is to reduce the quality gap between private and community schools. “The aim is not to weaken private schools but to improve the quality of community schools and make them the first choice of parents.”


Finance Minister Wagle said that the government has allocated Rs 1 billion education sector reforms in the coming fiscal year, adding that a detailed study will be conducted on the infrastructure and condition of schools across the country.


He said that preparations are being made to restructure the entire school system in collaboration with the Ministry of Education. According to him, the resources raised through the equity fund will be helpful in achieving the goals of education and social justice.


 

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