National
Govt withdraws decision to revise CGT threshold on sale of bonus & right shares
The government on Wednesday withdrew its earlier decision to revise the capital gains tax threshold on the sale of bonus and rights shares following protests from stock brokers.The government on Wednesday withdrew its earlier decision to revise the capital gains tax threshold on the sale of bonus and rights shares following protests from stock brokers.
The Finance Ministry has sent a letter to the Inland Revenue Department (IRD) to impose tax as per the previous provision for now. Following the direction, the IRD is planning to notify the Nepal Stock Exchange (Nepse), Securities Board of Nepal and CDS & Clearing regarding the same.
The stock investors, on Tuesday, had protested by boycotting trading on the Nepse for the whole day after holding a 30-minute boycott on Monday.
Investors had launched a protest after the IRD last Friday wrote to the Securities Board of Nepal, Nepse and CDS and Clearing instructing them to revise the capital gains tax threshold on bonus and rights shares.
The IRD had asked them to charge capital gains tax as per the Income Tax Act 2002. As per the new directive, investors are required to pay capital gains tax on the sale of rights and bonus shares on the basis of the market value of the company’s shares.
Meanwhile, following the recent updates investors have informed that they will resume share trading in a short while.