SEBON Suggests Capital Gains Tax Reduction, See The List Of Suggestions Submitted By SEBON To The Ministry Of Finance

The Securities Exchange Board of Nepal (SEBON) has submitted the Ministry of Finance (MINFNC) the necessary recommendations for inclusion in the upcoming budget.

The following is a list of SEBON's suggestions to MINFNC:

• Capital gains tax reduction. SEBON has proposed a 6.5 percent capital gains tax on short-term investments and only 4% on long-term investments. To increase investor confidence, the SEBON proposed lowering capital gains taxes. It was previously increased to 7.5 percent for short-term investments and 5% for long-term investments for a one-year period.

• Make arrangements for income from specialist investment funds to be tax-free.

• To examine the costs of investing in the primary and secondary securities markets.

• Reserve IPO issuance for Nepali people who have relocated to another country for work. SEBON believes that if this agreement is reached, it will facilitate the flow of remittances through formal channels.

• Establishing a distinct platform for small and medium-sized businesses to alleviate the current situation, which is marked by considerable volatility in secondary market pricing and indications.

• Structural adjustments, such as a capital increase for the Nepal Stock Exchange (NEPSE) and CDS, are required.

• Manage a barter market.

• Run private equity and venture capital funds.

• To make the Securities Board as a designated tax-exempt organization.

• To put the Securities Assurance Fund into operation by putting in place a solid plan to make securities trading and sale more efficient.

• Companies with a capital of Rs 1 arba or more than Rs 5 arba should be listed.