Kathmandu. The capital market reform task force formed by the Ministry of Finance has suggested the government to do away with the double burden of additional 5 percent tax on bonus and cash dividend of banks and financial institutions.
Share Investors Association of Nepal, Nepal Capital Market Investors Association and Independent Capital Market Investors Association submitted a memorandum to the formation of the task force formed under the coordination of Acting Executive Director of Securities Board of Nepal Rupesh KC. In the memorandum, the umbrella organizations of investors have demanded that the double burden of additional 5 percent tax on bonus and cash dividend distributed by banks and financial institutions by paying various taxes should be abolished.
The memorandum also suggested that the current limit of 25 percent dividend distribution in microfinance institutions should be allowed to distribute dividends according to the true profit and financial capacity as the current limit of 25 percent is against the principle of open economy. The task force has also been suggested to expand the scope of the securities broker business and make arrangements to operate from all 77 districts across the country.
Similarly, investors have also suggested to implement the SME platform for small and medium enterprises (SMEs) soon. Investors have suggested that the licensing process of new stock exchanges should be forwarded to increase the service by increasing competition by increasing competition, easing the listing of companies, increasing the access of investors, ensuring transparency and sustainability and to make the capital market modern and competitive in the international level.
The memorandum also suggested the government to immediately implement new financial instruments such as options market, futures market, intraday trading and short sell. g.
