Kathmandu: The government has introduced new taxes and fees on seven categories of goods and services from today, the first day of the new fiscal year, expanding the country’s tax base in an effort to boost revenue collection.
The new measures affect private education, healthcare, electricity, gold and silver, ride-sharing services, casinos, and luxury hotels and resorts. While the government says the changes are necessary to strengthen state revenue, consumers are expected to face higher costs across several sectors.
Economists and consumer groups warn that the biggest burden is likely to fall on middle-income households, particularly through higher expenses for education, healthcare and electricity.
1. Private School Fees Become Costlier
Private schools are now required to collect a 3 percent tax on tuition fees and other charges.
If the additional cost is passed on to parents, a student paying Rs 10,000 in monthly tuition will pay an extra Rs 300 every month.
The move is expected to increase education expenses for thousands of families relying on private schools.
2. Treatment at Private Hospitals Now Costs More
Patients seeking treatment at private hospitals and healthcare institutions will also face a 3 percent tax on medical services.
For instance, a hospital bill of Rs 100,000 will now attract an additional Rs 3,000 in tax.
Healthcare experts have expressed concern that the measure could further increase the financial burden on patients already struggling with rising medical costs.
3. Higher Tax on Gold and Silver
The government has increased the tax on purchases of gold, silver and jewellery by 0.5 percent.
The higher levy is expected to increase prices for consumers purchasing precious metals for weddings, festivals and investment purposes. Jewellery traders also anticipate a possible decline in demand.
4. Casino Royalty Doubled
The annual royalty payable by casino operators has been doubled from Rs 15 million to Rs 30 million.
Although the increase directly affects casino businesses, operators may eventually recover part of the additional cost through higher service charges or other fees.
5. VAT on Electricity Consumption Above 50 Units
Households and businesses consuming more than 50 units of electricity per month will now be required to pay 5 percent Value Added Tax (VAT) on electricity charges beyond that threshold.
Consumers using 50 units or less each month will continue to remain exempt.
The measure is expected to affect a large number of urban households, commercial establishments and industries.
6. Ride-Sharing Services Face New Service Charge
Ride-sharing companies have been brought under a 5 percent service charge.
The additional cost could lead to higher fares for passengers or lower earnings for drivers, depending on how ride-sharing platforms choose to implement the new provision.
7. Luxury Hotels, Resorts and Imported Liquor Become More Expensive
The government has also imposed an additional 2 percent charge on five-star hotels, luxury resorts and imported alcoholic beverages.
Industry representatives say the new levy will increase operating costs and may ultimately result in higher prices for consumers and tourists.
Who Will Feel the Impact?
The new tax measures are expected to have the greatest impact on:
- Parents with children studying in private schools
- Patients seeking treatment at private hospitals
- Households and businesses consuming more than 50 units of electricity per month
- Users of ride-sharing services
- Consumers purchasing gold and silver
- Guests staying at luxury hotels and resorts
- Buyers of imported alcoholic beverages
Casino operators will directly bear the increased royalty burden, although some of the additional cost could eventually be passed on to customers.
While the government expects the new measures to strengthen revenue collection, businesses and consumer groups have urged authorities to closely monitor their impact on household expenses, inflation and overall economic activity in the months ahead.
