Kathmandu. Finance Minister Dr Swarnim Wagle has said the 3 per cent tax on private school fees will not be an additional financial burden on parents. The government has decided to impose a 3 percent tax on private schools in the budget for the coming fiscal year.

Replying to the discussion on the budget in the House of Representatives on Thursday, Finance Minister Wagle said that the impact of the tax on school fees would be lessened due to the exemption given to parents from income tax.

He said that the 3 per cent tax would be very low for parents who pay Rs 3,000-4,000 per month outside Kathmandu. Likewise, those earning up to Rs 1 million annually will be exempted from income tax and will be able to get tax exemption up to Rs 25,000 or 25 percent of the expenses spent on children’s education.

Finance Minister Wagle clarified that the government has made this provision with the objective of bringing the education sector under the formal tax net without immediately burdening the general public. According to him, the policy has been introduced to systematize the tax system as many parents studying in private schools are out of the tax net.

He claimed that the income tax exemption would offset the impact of the tax on private school fees.