Kathmandu. The capital gains tax on share transactions reduced by the government has officially come into effect.
The government has implemented the decision to reduce capital gains tax by publishing it in the Nepal Gazette. With this, the body working in the securities exchange market has fixed 3.5 percent of the profit amount of the interest in the interest held for more than 365 days in the case of a resident natural person and 5 percent of the profit amount in the interest owned for less than 365 days. This means that the long-term investor will now pay 3 percent capital gains tax and the short-term investor will pay 5 percent capital gains tax.
Earlier, the budget for the current fiscal year had increased the capital gains tax on share transactions to 7.5 percent for long-term investors and 10 percent for short-term investors. Earlier, the capital gains tax was 5 percent and 7.5 percent, respectively.
After the increase in capital gains tax from the budget, the stock investors had strongly criticized the government. After this criticism, the Finance Ministry reconsidered and decided to reduce the capital gains tax to 3.5 percent for long-term investors and 5 percent for short-term investors.
