Stockbrokers halt trading at Nepse

KATHMANDU: Stockbrokers halted trading at Nepal Stock Exchange from Thursday for an indefinite period as the tax offices have sought value added tax (VAT) submission from the broker commission from fiscal 2012-13.

Tax administration has written to the stockbrokers to be registered in the VAT net as early as possible and urged for the submission of VAT since the last four years.

Against the move of the government to impose retrospective tax on the stockbrokers, the Stock Brokers’ Association of Nepal (SBAN) has decided to halt trading until the issue is resolved. Issuing a press statement, SBAN has said that the government’s policy to impose retrospective tax is not justifiable as the broker companies have not been collecting VAT from their clients.