The two sides agreed to scrap EST from the existing laws, but collect money from private academic institutions in the name of Education Development Support Fee (EDSF). The Ministry of Finance will initiate work to scrap EST from existing laws.
As per the agreement, each private academic institution will contribute to the EDSF as per parameters set by APEIN. Each of the seven affiliates of APEIN will develop the parameters according to the ´nature´ of fee academic institutions charge their students.
The APEIN is the umbrella organization of Private and Boarding School Organization, Nepal (PABSON), National-PABSON, Higher Secondary School Association of Nepal (HISSAN) and four other organizations of educational institutions providing technical education.
Following the agreement, the seven organizations of private academic institutions have agreed to provide a bulk amount to the EDSF for education of students studying in rural areas and those from backward communities.
Though the row over the EST has come to an end, this will but put additional financial burden on parents. The EDSF amount the private academic institutions will pay to the government would be collected from parents enrolling their children to school.
In the agreement, the government has agreed to positively acknowledge the contributions made by private schools that are registered under the Company Act and are paying taxes to the government.
The private academic institutions have agreed to implement a Code of Conduct for teachers, students and other staff to help redress managerial problems seen in the schools.
Speaking at news conference organized at Finance Ministry, PABSON President Bhoj Bahadur Shah said the issue of EST has been resolved.
Revenue Secretary at the Ministry Krishna Hari Banskota said that the government slapped the EST on private school to find alternative source of income to bridge funding gap in education sector. He said that the government has highly valued the contribution made by private schools to the government.
The government has not been able to recruit some 62,000 teachers in government schools for want of necessary fund.
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