Kathmandu, July 21: The government has decided not to implement the three percent equity fee on private education and health services following widespread public opposition.

Prime Minister Balendra Shah announced the decision through a Facebook post on Tuesday, saying it was made in consultation with Finance Minister Dr. Swarnim Wagle.

Shah said the government reviewed the policy after concluding that its immediate implementation would place an additional financial burden on the public and create unnecessary hardship.

He clarified that the original objective of the equity fee was to improve access to quality education and healthcare for people in remote and disadvantaged areas, support Dalit, marginalized and low-income children, expand health insurance coverage, and mobilize resources for these initiatives.

The prime minister also said the measure was intended to broaden the tax base and make the economy more systematic.

However, he acknowledged that the strong public response to the proposed fee had prompted the government to reconsider the decision, reaffirming its commitment to addressing public concerns.

Shah said the government would continue to place citizens’ interests at the center of its policymaking and remain open to revising decisions that fail to gain public support.

He also reiterated the government’s commitment to enforcing a policy requiring private hospitals to reserve 10 percent of their beds and private colleges and universities to allocate 10 percent of their seats in a transparent and equitable manner for disadvantaged citizens seeking quality healthcare and education.