SC turns down plea for interim order against education service tax

The Supreme Court has turned down a plea for an interim order to prevent the implementation of the five percent 'education service tax' introduced by the government.

In a preliminary ruling on the writ petition jointly filed by the Institutional Schools Association Nepal (ISAN), Nepal Law Society and Guardians' Association, a division bench today announced that interim order is unnecessary in this case. The bench also stated that the new tax scheme is well within the authority of the government.

Next hearing on the case will be on December 26.

On November 2, the apex court had issued a show cause notice to concerned government authorities regarding the service tax which has been opposed by private school operators and guardians alike.

The petitioners have said the tax is unjustifiable and should be revoked. They have also argued that the tax is against the constitutional provision which guarantees free education up to secondary level to every citizen.

They moved the court after the Inland Revenue Department issued notices to private schools, urging them to comply with the tax policy. nepalnews.com mk Nov 12 08

Related news
- SC issues show cause notice to govt on education service tax