Govt backs out: Capital Gains Tax on bonus/right shares to be calculated as per earlier provision

Ministry of Finance has provided verbal assurance to investors’ demand of rolling back the new capital gains tax rule, bringing a successful end to investors’ nationwide protest against the new rule. With this, regular trading in NEPSE is set to start after the ministry drafts a formal letter to Inland Revenue Department.

As per Mr. Dipendra Agrawal, Nepal Investors’ Forum, investors will only start trading after an official confirmation has been received from NEPSE. The ministry should first draft a letter to the IRD, after which IRD will issue a circular to SEBON, NEPSE and CDS & Clearing Limited. With this, capital gains tax will now be calculated by the old method of average base price.

Agitated investors had organized protests against the IRD's latest decision to levy capital gains tax on bonus and right shares by keeping par value as the base price. Investors all over the country had united against the decision by not trading in the stock exchange yesterday.