Nepal PM scraps education and health taxes amid public outcry

Nepal’s Prime Minister Balendra Shah has announced the scrapping of a 3% tax on education and health services, just days after it came into effect.

The tax, which was introduced on Ashar 1, 2083, had sparked widespread criticism and protests from the public, with many arguing that it would disproportionately affect low-income families.

Public backlash

The tax was part of a broader effort to increase revenue and reduce the country’s fiscal deficit. However, it was met with fierce resistance from the public, with many taking to social media to express their outrage.

Even some economists had criticized the move, arguing that it would do little to address the country’s fiscal woes and would instead place an undue burden on already struggling families.

PM’s sudden U-turn

Despite the backlash, Finance Minister Swarnim Wagle had defended the tax, arguing that it was necessary to fund vital public services. However, in a surprise move, Prime Minister Shah announced on Facebook that the tax would be scrapped, citing public pressure and a desire to protect the country’s most vulnerable citizens.

While the move has been welcomed by many, it has also raised questions about the government’s ability to manage its finances and make tough decisions.

Procedural concerns

Some have also raised concerns about the way in which the tax was scrapped, with the Prime Minister announcing the move on social media without first consulting the Finance Minister or the Cabinet.

According to the country’s laws, any changes to tax rates or policies must be approved by the Cabinet and then ratified by Parliament. However, in this case, the Prime Minister appears to have acted unilaterally, sparking concerns about the rule of law and the separation of powers.