Education consultancies and foreign colleges evade trillions in taxes under the guise of foreign education

By LB Thapa

“Many education consultancies conceal their actual income and avoid paying taxes. In fact, these consultancies charge exorbitant fees and service charges from students, generating enormous profits."

According to a report published in Harpan Khabar, numerous education consultancies and foreign colleges are involved in tax evasion amounting to trillions of rupees annually. This is undoubtedly startling news. 

It has been revealed that under the pretext of sending students abroad, many consultancies and foreign colleges have allegedly evaded hundreds of billions in government revenue, deceived hundreds of thousands of students, and created a chaotic situation that has shaken the state. In response, the government is now preparing to tighten legal measures to curb the activities of these unscrupulous education consultancies. 

Operating under the facade of education, these consultancies and foreign colleges have been concealing exploitative business practices. Based on substantial evidence received by the Commission for the Investigation of Abuse of Authority (CIAA), the central bank, and the revenue department, authorities have launched investigations that are expected to expose their wrongdoing. It is now almost certain that the operators, who have enjoyed illicit gains for years, will face a crackdown. 

In the past two years alone, 32,000 students went to Australia, 17,000 to the United Kingdom, and a combined total of 80,000 to the United States, Canada, New Zealand, Japan, and South Korea. The exploitation of approximately 300,000 Nepali students has significantly drained the country's resources. 

The most popular destinations for Nepalese students pursuing higher education include the USA, Canada, New Zealand, Japan, and South Korea. Many education consultancies conceal their actual income and avoid paying taxes. In fact, these consultancies charge exorbitant fees and service charges from students, generating enormous profits. 

This situation has resulted in a substantial net loss of revenue for the state, prompting decisive action. Until now, the so-called “education consultancy mafia” and their supporters have acted with impunity, but they will no longer be able to cheat the state. 

The government has decided to treat the matter with the seriousness it deserves and will conduct a thorough investigation at the earliest possible opportunity.

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