Government Collects Rs 2.57 Arba in Capital Gains Tax Between Mid-August and Mid-September

The government collected Rs 2.57 Arba in capital gains tax (CGT) from share transactions between mid-August and mid-September. This comes despite a significant 11% drop in the Nepal Stock Exchange (NEPSE) index, which fell by over 300 points. Investors selling shares to lock in profits from earlier market gains played a key role in driving the tax collection.

Compared to the previous period, CGT revenue saw a 39% decline, as the government collected Rs 4.23 Arba between mid-July and mid-August. Of the total amount collected last month, Rs 73.39 Crores came from long-term investors holding shares for over a year, while Rs 1.53 Arba was from short-term investors who traded within a year.

Market capitalization stood at Rs 42.7 Kharba in mid-September, reflecting a Rs 49 Arba drop from the previous month. Despite the decline in the market, investors earned Rs 609 Arba in the first two months of the fiscal year, and the government has collected a total of Rs 6.81 Arba in CGT during that period.