According to reports, although the budget states that the capital gains tax on the stock market is final, the Economic Bill mandates individuals earning more than NPR 4 million annually to compulsorily submit income statements. Finance Minister Dr. Swarnim Wagle clarified that the capital gains tax on shares is final and stated that if there are any contradictions in the bill, they are ready to make corrections. He explained that based on investors’ demands, the capital gains tax rates have been finalized at 7.5 percent and 10 percent respectively. — May 31, Kathmandu.
One of the key points in the budget interprets the capital gains tax applied to the secondary market as final. This means that any profit earned from the capital market will be subject to a final tax. The Economic Bill considers capital gains tax up to NPR 4 million per year as final but requires compulsory submission of income statements if income exceeds that amount.
In a press conference held after the budget announcement, Finance Minister Dr. Swarnim Wagle attempted to explain this issue but was unable to fully clarify it according to the bill. He admitted there was some ambiguity regarding the NPR 4 million threshold and said, “Income from your shares is finalized. If you have any other consultancy or business income, you will have to submit the income statement form where you can declare the profit earned from shares, on which tax has already been deducted, thus ensuring that double taxation does not occur.”
