No doubt private schools are business in Nepal. Schools are registered under the Company Act and are liable to pay income tax as any other company.The District Education Office (Jilla Sikchya Karlaya) is there to monitor the transparency of these schools. The officials can come any time to audit accounts of private schools. This is the failure of government for not been able to monitor properly and make schools liable to pay tax that they schould be paying. The question arises - why should schools/parents pay extra money for the failure of government?

In other hand, 5% tax on revenue is huge burden to any business. Whether or not schools are profitable, they need to pay 5% tax as per new rule and in addition income tax is always there if they are on profit. Which law allows duel taxation for a single sector? It looks like govt. is formulating these policies looking on few big schools like LA,GEMS,Galaxy,etc. What about private schools in remote areas where they are charging low / moderate fees?

I think the decision to impose 5% tax is a mistake, rather govt. should encourage schools to maintain transparency by motivating them. Dr.Bhattarai is eyeing to collect revenue as per his target by hook or crook and failed to formulate policy for long term.