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Pvt school operators refuse to pay service tax

The operators of private schools have refused to pay additional five percent service tax imposed by the government through this year's budget.

Teachers affiliated with Private and Boarding Schools Organisation of Nepal (ABSON) submit memorandum at District Education Office of Lalitpur on Wednesday, Dec 10 08. PABSON has demanded that the government scrap the 5 percent 'educational service tax' levied on private schools. nepalnews.com/NPA

They have announced a nationwide movement demanding that the government withdraw the additional tax.

They have said that private schools were already allocating scholarship to underprivileged students in ten percent of seats and have been paying other taxes as per the law.

On Wednesday, the Private and Boarding School Organisation of Nepal (PABSON) drew the attention of district education offices across the country about their movement.

The movement is being jointly launched by six organisations including PABSON, N-PABSON and Higher Secondary Schools association.

PABSON has informed that there are 8500 private schools in the country where 2 million students study and 175,000 teachers and staffs work. The private schools are already paying 25 percent as income tax, ten percent scholarship, rental tax, and income taxes of teachers and staffs, it said.

"It is unfortunate that the state is trying to turn private schools as tax-churning machines," said PABSON president Bhoj Bahadur Shah. nepalnews.com sd Dec 11 08

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