PM directs to halt tax on FPOs

KATHMANDU, April 17: Prime Minister Pushpa Kamal Dahal has directed the stakeholders to postpone the decision on imposing tax on share premium amount sold through the further public offerings (FPOs). The prime minister has also asked to seek a long-term solution to this issue.

The prime minister issued such a directive after the Confederation of Nepalese Industries (CNI) and Nepal Bankers' Association drew his attention regarding the impacts of the taxation on the share's premium amount.   

During the meeting with the business leaders, Prime Minister Dahal vowed to advance the process to address this issue for the long term. The banks and financial institutions (BFIs) had increased their paid up capital through the FPO as per the directive of the central bank.

During that period, there was no taxation on FPO but the 58th Annual Report of the Office of the Auditor General had mentioned that the FPO share's premium amount should come under the ambit of tax while concluding that the tax amount should be paid by such companies.