Kathmandu, July 31 The Ministry of Finance (MoF) has finally put to rest the dispute related to capital gains tax (CGT) in share transactions, stating the base price for calculation of CGT will be derived from the weighted average of share price from July 16, 2001 to July 16, 2019. The MoF had summoned representatives from concerned stakeholders, including Securities Board of Nepal (SEBON), Nepal Stock Exchange (Nepse), CDS and Clearing Ltd (CDSC), Inland Revenue Department, Nepal Investors Forum, Investors Association of Nepal, Nepal Punjibazaar Laganikarta Sangh, Nepal Capital Market Investors Association and Share Investors’ Pressure Group, for consultation on the issue at the ministry today. The CDSC will determine the average price of shares from fiscal 2001-02 to fiscal 2018-19. That amount will be used as the base price for CGT calculation. Similarly, for transactions that occur from the ongoing fiscal year, the CGT will be calculated based on the actual price at which the shares have been bought. Since the calculation will be done by CDSC, investors will not be required to visit the brokers’ office. Uttam Aryal, chairman of Investors Association of Nepal, who had attended the meeting today, said the MoF has directed SEBON to finalise necessary procedures for collecting CGT. “The ministry has told SEBON to immediately call its board meeting and give necessary direction to CDSC.” Earlier, share investors had urged the government to calculate CGT by taking share price of one particular day as the base price. However, government officials had refused to budge from their stance that the base price would be calculated on the opening price of the shares on a daily basis.
Row related to CGT in share transaction resolved
Published: 06:00 pm Aug 01, 2019