Educational tax:

The decision made recently by finance Minister Dr. Bhattrai to levy a five pc taxes on private schools seems feasible only if the collected tax money will be utilized and mobilized to materialize the targeted goal as expected. Yet, there are challenges that will come on the way if taxing policy is imposed. As of now, the ministry of education has not formulated any such proper plans and policies upon which the plan will work out. The only aforementioned statement that the sums collected will be utilized to provide education for deprived students, marginalized students etc. will not attract the people of remote areas unless the government starts implementing it’s plan into work. Interestingly, the PABSON’s threat to shut down all private schools has calm down. Because it does not want to shut down the money generating school industries. Some time ago the threat seemed like a stir that probably would hit the education sector nationwide. But the threat remained in empty speeches. Isn’t it surprising as to why PABSON is keeping mum suddenly? None of us has thought of the other side of PABSON’s step. Once it threatened the whole education sector to oppose the taxing policy of government by closing all private schools, but now it has not rai sed a voice. If we think the matter seriously, who will pay the education tax? Taxing all private schools nationwide will not make tax policy an effective one and the policy will not turn a rational one if the annual revenues of all PABSION registered schools are taken into consideration of. However, on the one hand there are thousands of schools generating ample profits, and on the other there are such schools that are crawling to survive. Is it a fair decision to levy a five pc tax on all private schools? Also, there are schools not registered with PABSON. However, we have no clear data regarding the annual revenues of private schools, but can arbitrarily figure out and conclude the fact that there are many private schools in the country that are running only primary classes and are just able to manage break-even points. In order to materialize the tax policy, the government must divide all private schools into groups and sub groups on the basis of population of student in the schools. In addition, the government can take the elements like fee structure of schools, facilities provided, quality of education as yardstick in the formulation of tax policy. Also, it can inspect if the schools are run as per the set standard or not. Therefore, the government can make the policy effectual and can easily impose only if it proportionately levies tax according to the stratum of schools. Furthermore, the government must make the private schools’ account transparent to th e public. It must make it mandatory that private school must publish half-yearly and yearly profit and loss account and balance sheet in newspaper. It is for sure, if the government imposes a flat tax rate on all school without taking scientific and counteractive measures into consideration, that the parents will receive a notice “the five pc tax imposed by the government will be paid by the parents/guardians and will be added to bill”. The next month, the parents/guardians will start receiving an added five pc bill. Isn’t it an added burden for parents/guardians, who already are in financial woes, to pay added tax along with the school fee? Is taxing parents/guardians the next PABSON’s step?