SC moved against service tax on private schools

A writ petition was filed at the Supreme Court on Friday challenging the five percent educational service tax introduced by the government.

The petition jointly filed by Institutional Schools Association Nepal (ISAN), Nepal Law Society and Guardians' Association says the service tax is unjustifiable and should be revoked. It also says the tax is against the constitutional provision that seeks to guarantee free education up to secondary level to every citizen.

Last month, the government introduced the educational service tax through the budget for fiscal year 2008/08 in order to increase spending on education in rural parts of the country.

While the private school operators have opposed the service tax which they say will be an extra burden on guardians education minister Renu Yadav has repeatedly said the government would not revoke it. nepalnews.com mk Oct 31 08

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