Nepal Student Fare Row: Operators Refuse 45% Discount

Kathmandu — A fresh dispute has emerged between the government and transport operators over the implementation of a 45 percent fare discount for students in public transportation.

The Department of Transport Management (DoTM) has directed transport entrepreneurs to strictly enforce the long-standing provision that grants students a 45 percent concession on public vehicle fares. The department recently issued circulars to key stakeholders, including the Nepal Transport Entrepreneurs Federation and Sajha Yatayat Cooperative, urging them to ensure compliance with the legal provision.

The move comes amid rising complaints from students, who have reported being denied the mandated discount despite presenting valid identification cards. According to the department, grievances filed through Hello Sarkar and complaint channels indicate that drivers and conductors have refused concessions and, in some cases, behaved improperly toward students.

The directive also recalls a government decision made on Falgun 20, 2065 BS, under which transport operators had agreed to provide the student discount.

Transport Operators Reject Directive, Cite Tax Burden

However, transport entrepreneurs have strongly opposed the government’s directive, warning that they will no longer provide the concession under current conditions.

In a formal response to the department, the Nepal Transport Entrepreneurs Federation stated that the student discount cannot be implemented unless the government restores the tax benefits previously provided to operators.

According to the federation, the earlier agreement included a provision granting transport operators up to 60 percent concessions in taxes, route permits, and vehicle inspections in exchange for offering the student discount. They claim that these benefits were withdrawn after Nepal transitioned to a federal system, particularly since 2073 BS, placing an additional financial burden on operators.

Operators argue that while provincial governments continue to impose taxes, the federal government has failed to provide compensatory relief, making it financially unviable to continue offering discounted fares.

In a statement signed by General Secretary Deknath Gautam, the federation accused the government of pushing transport businesses toward financial collapse. They also noted that, except for Koshi Province, operators in other regions are not receiving any meaningful concessions.

Policy Conflict Deepens Between Student Welfare and Business Sustainability

“On one hand, the state withdraws our benefits and increases our tax burden, and on the other, it expects us to continue offering discounts,” the statement said, questioning the fairness of the directive.

The federation has made it clear that it will not comply with the student discount policy unless both federal and provincial governments legally reinstate the 60 percent tax concessions.

The standoff highlights a growing policy conflict between ensuring student welfare and sustaining transport businesses, raising broader questions about the implementation of long-standing agreements in Nepal’s evolving governance structure.