Transport operators refuse student fare discounts

KATHMANDU: Nepal’s transport operators have announced they will no longer provide fare discounts to students, escalating a dispute with the government over tax concessions.

The decision was made by the Nepal Transport Entrepreneurs National Federation in response to a directive from the Department of Transport Management urging operators to continue offering student discounts on public transport.

In a formal reply, the federation said it would not implement any student fare concessions unless the government reinstates tax benefits previously granted to transport businesses.

It argued that the state is unfairly pressuring operators by enforcing an outdated policy dating back to 2065.

According to the federation, an earlier agreement allowed operators to offer up to 45% discounts to students in exchange for around 60% tax relief on annual taxes, route permits and vehicle inspections.

However, it claims those concessions were withdrawn after Nepal adopted a federal system, with the benefits effectively removed from 2073.

Operators say they now face a dual burden: provincial governments impose taxes arbitrarily, while the federal government has scrapped earlier incentives. Without financial relief, they argue, continuing discounted services is no longer viable.

In a statement signed by General Secretary Deknath Gautam, the federation also noted that, aside from Koshi Province, operators in other regions receive no such concessions.

It accused the government of pushing businesses towards financial collapse.

“Why should we continue offering discounts to students when the state has stripped us of our rights and benefits?” the statement said.

The federation has made clear it will not comply with any directive on student concessions until both federal and provincial authorities legally reinstate the 60% tax relief.