The new development comes after a meeting between Finance Minister Dr Babu Ram Bhattarai and a six-member talk team led by Bhoj Bahadur Shah, President of the Private and Boarding Schools Organization, Nepal (PABSON),Tuesday afternoon. [break]
The two sides held detailed discussions on various issues pertaining to the education sector and agreed in principle to clinch a 12-point deal.
The talks brought together representatives of seven various umbrella organizations of private academic institutions including the Higher Secondary Schools Association of Nepal (HISAN), the National Private and Boarding School Organization, Nepal (NPABSON) and PABSON.
The government has agreed to scrap the mandatory provision of five percent education service tax on private schools across the country. However, the government will charge a certain amount from each private school for the benefit of students belonging to backward communities and rural areas.
"The government has agreed to scrap the provision on five percent tax in the new budget," said PABSON President Shah. "But we are yet to clinch the deal on paper."
The government´s decision to slap the five percent tax had drawn flak, with the private schools taking to the streets. The finance minister had even threatened not to allow students at schools failing to pay the tax from sitting for the School Leaving Examination examinations.
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