Banking News – Finance Minister Dr. Swarnim Wagle has decided to withdraw the 3% equity levy imposed on the education and health sectors. Following consultations with Prime Minister Balendra Shah (Balen), the minister made the decision through a ministerial resolution on Wednesday, with the proposal now set to be presented to the Cabinet.

The 3% levy, announced in the Fiscal Year 2083/84 budget, came into effect on Shrawan 1. However, the government began reviewing the policy after it faced widespread public criticism and concerns from stakeholders.

The Prime Minister and the Finance Minister held extensive discussions on the issue earlier this week. Following those consultations, Prime Minister Shah announced on Tuesday that the government would initiate the process of scrapping the levy.

According to the ministerial decision, a full exemption will be granted on the Education Equity Levy imposed under Section 16 of the Finance Act 2083 and the Health Equity Levy imposed under Section 17, in accordance with Section 18(1) of the Act.

The proposal has now been forwarded to Wednesday’s Cabinet meeting for approval.