Kathmandu. The government has increased the rate of capital gains tax collected from share trading.
The government has increased the rate of capital gains tax collected from share trading through the Finance Bill issued after the announcement of the budget for the coming fiscal year. Now, investors will have to pay 10 percent capital gains tax on short-term shares and 7 percent for long-term investors.
Currently, investors are paying 7.5 percent capital gains tax for short-term shares and 5 percent for long-term transactions. Short-term refers to transactions within 1 year and long-term refers to transactions after 1 year. In this context, the capital gains tax on short-term transactions has increased by 33.33 percent and the capital gains tax on long-term transactions has increased by 50 percent.
However, the government has announced that the capital gains tax collected from share trading will be the final tax in the next year’s budget. Earlier, the government had not officially announced that the capital gains tax collected from share trading would be the final tax.
Although the capital gains tax has been increased through the Finance Bill, the government has announced that the capital gains tax collected from the stock market will be the final tax.
