Agreement made by Ministry of Finance: Capital gains tax finalized

KATHMANDU, June 4: An agreement on the topic of capital gains tax has reached common ground between common investors and the government. 

Finance Minister Dr. Prakash Sharan Mahat made the decision to finalise the capital gains tax on Sunday. The Ministry of Finance has issued a press release declaring 5 percent and 7.5 percent as the final capital gains tax.

The government had interpreted the capital taxes on real estate and share turnovers as advanced taxes, as per the Economic Bill 2080-81. But investors had been demanding the government to not consider Capital as an initial tax.

Investors had demanded the government to consider the current 5 percent and 7.5 percent capital gains tax as the final tax. Investors were protesting over this issue for a few days.

After the Ministry’s decision, investors who were forcibly closing TMS over the issue of capital gains tax have withdrawn their protests.