Meeting between MoF and Investors is unable to resolve CGT problem; investors to inhibit trade untill the issue gets solved.

Investor’s agitation has started after the government imposed new capital gain tax(CGT) on bonus & right share at cost-price of par value (Rs 100).Investors were seen protesting in the Nepal Stock Exchange premises today.  Protestors were invited by the Ministry of Finance for the meeting so forth members of all important investors’ organization of Nepal attend it.

In the meeting, Ministry of Finance was represented by Deputy Secretary Uttar Kumar Khatri whereas investors were represented by the Chairman of Investor forum, Ambika Poudel, the Vice-chairman of Share Laganikarta Sangh, Tara Phullel, CDSC chief officer, Dev Prakash Gupta and the Chairman of Broker association, Priya Raj Regmi.

Vice-Chairman of Share Laganikarta Sangh, Mr. Tara Phullel, talked to Sharesansar and gave crucial information on the meeting and on investors ongoing protest.

In the meeting, at first the ministry of finance took the opinion of investor’s representatives on new CGT and gave justification for their imposed CGT on bonus & right share, they assured that tax will be imposed only when investors make profit as per the new CGT system. Investors raised a demand for imposing CGT on annualized profit, further they demanded for the detail & transparent exposure of the new CGT system. Mr. Phullel said that they will carry the agitation more strictly and the entire members of all investors organization has decided, not to trade until the issue gets solved. At last, he said, Ministry of Finance could call another meeting, if required.

The meeting today, didn’t have any concrete conclusion.