Kathmandu, May 22
To encourage long-term investment in the securities market, the Nepal Securities Board
(SEBON) has recommended lowering the capital gains tax.
For the next Fiscal Year 2079/80 budget, the Board has made such a suggestion regarding the securities and barter markets. According to the board’s suggestion, the time limit for short-term investments is 180 days, and the revenue from such investments is subject to just a 6.5 percent capital gains tax. Short-term investments are now subject to a 7% capital gains tax for one year.
The Board has suggested that a long-term investment with a length of more than 180 days be taxed at just 4% capital gains tax. The board made such a recommendation to raise investor confidence, claiming that the government’s tax collection has also been affected owing to a lack of secondary market trade.
The board has also proposed that income from specialist investment funds be exempt from
taxation. It has been requested to assess the costs charged for investing in the primary and secondary markets of securities in order to make the stock market more investor-friendly.
