Govt collected CGT worth Rs 2.86 billion from shares trading in first seven months of current FY

Published On: February 19, 2024 10:06 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Feb 19: The government has collected capital gains tax (CGT) worth Rs 2.86 billion from the shares transactions in the first seven months of the current fiscal year.

According to the CDS and Clearing Limited, the government collected the aforementioned amount of revenue out of the transactions of stocks in Nepal Stock Exchange (NEPSE) during mid-July 2023 and mid-February 2024. With a collection of Rs 972 million, revenue under the heading was the largest last month.

The amount collected during mid-January and mid-February was 33.66 percent more than the amount (Rs 743.9 million) in the previous month. The records with the CDS and Clearing shows that the short-term investors contributed the highest amount to the capital gains tax during this period.

Individual investors are liable to pay CGT of 5 percent or 7.5 percent, depending on the duration that the investors hold shares before they take them for transactions. The individuals who sell the stocks they hold within one year from the purchase date are considered as short-term investors, while those who sell after one year are categorized under the long-term investors. The institutional investors are liable to pay 10 percent tax on their capital gains.  

Meanwhile, Nepal Telecom with its market capitalization worth Rs 156.06 billion stands as the largest listed company at NEPSE.  Likewise, Nabil Bank and the Citizens Investment Trust have received recognition in the second and third positions, respectively, in terms of the market capitalization.

Nepal Reinsurance Company, Global IME Bank, Himalayan Reinsurance, NIC Asia Bank, Everest Bank, Nepal Investment Mega Bank and Nepal Life Insurance are among the top ten companies in the category. According to NEPSE, the total market capitalization at the secondary market reached Rs 3.198 trillion as of Sunday.    


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