The Cabinet has approved the removal of the education and health equity fees, which Prime Minister Balen Shah had announced via Facebook.
According to government spokesperson Sasmit Pokharel, a Cabinet meeting held on Wednesday decided to fully waive both levies introduced under the Finance Act, 2026.
Pokharel said that the decision was taken based on a proposal from the Ministry of Finance.
The government had introduced the levies through the budget for the current fiscal year 2026-27.
The levies, which came into effect on July 17, faced criticism from the private sector, educational institutions, the health sector, and the general public, forcing the government to reverse its decision.
PM Shah had publicly announced on Tuesday that the process to remove the education and health equity fees would be initiated immediately. A day later, the Cabinet formally decided to fully scrap both levies.