Negotiations Between Finance Minister, Concerned Stakeholders and Dissenting Investors Concludes; CGT Established as Final Tax

The ongoing negotiations between the representatives of the Finance Ministry, Inland Revenue Department (IRD), SEBON Chairman, Stock Brokers Association of Nepal (SBAN), and Nepal Investor Forum, Share Investor Federation and Nepal Capital Market Federation and other stakeholders have concluded. 

Talking to Sharesansar over the phone, President of the Nepal Investors Forum Tulsi Ram Dhakal confirmed that just now the ongoing discussions with concerned officials had concluded. 

Dhakal had added, "Currently, a draft of a press release is being prepared to be publicized that will mention in detail the agreements that have been reached." 

This morning, all 50 existing brokers had remained non-functional despite regular specified market opening hours at 11:00am.

Consequently, a meeting of all concerned stakeholders had been called this morning at the Singhadurbar-based Ministry of Finance.

The incumbent Finance Minister Dr. Prakash Sharan Mahat was present in the meeting this morning.

Fin Min Mahat claimed that the government has addressed the demands put forth by the dissenting investors.

Minister Mahat requested the investors to not panic and ascertained the fact the Capital Gain Tax (CGT) has been established as the final tax and that no additional taxes will be levied on profits from share trading. 

Read Ministry of Finance's press release here: 

Earlier on Jestha 15, Finance Minister had presented the financial budget for the upcoming fiscal year 2080-81. Addressing the joint session of both the houses of the federal parliament Minister Mahat had announced new tax arrangements with regard to imposing addition tax on share trading income in the capital market.

Ever since the announcement was made, it had sparked a controversy and led to confusion amongst the investors. Subsequently, the sensitive NEPSE Index had suffered.

However, as trading for the first day of the week began after the controversy was put to rest as of writing, NEPSE has shot up 47.01 points to stand at 1913.35 points. 

MUST READ: Time-line of The Rule 29 of Economic Bill, 2080 Controversy

The protesting investors have been demanding to maintain the Capital Gain Tax (CGT) as the final tax on share trading income and not to levy any additional taxes on such profits. 

Earlier, the Stock Brokers' Association Of Nepal (SBAN) had responded to threats by agitating protestors with regard to new taxation arrangements in the recently announced fiscal budget.

READ MORE: SBAN Responds To Warnings of TMS Closures from Dissenting Investors