Share investors continue strike, demand govt to revoke its decision
June 6, 2018 11:34 AM NPT
KATHMANDU, June 6: Share investors continued have continued their protest against government’s decision to revise the capital gains tax threshold on the sale of bonus and rights shares.
Investors launched a protest after the Inland Revenue Department (IRD) last Friday wrote to the Securities Board of Nepal, Nepse and CDS and Clearing instructing them to revise the capital gains tax threshold on bonus and rights shares.
The IRD has asked them to charge capital gains tax as per the Income Tax Act 2002. As per the new directive, investors are required to pay capital gains tax on the sale of rights and bonus shares on the basis of the market value of the company’s shares.
The new provision has slapped 7.5 percent capital gains tax on the sale of bonus and rights shares, an increment from 5.5 earlier. Likewise, under this provision, institutional investors are required to pay 10 percent capital gains tax.
Uttam Aryal, president of Share Investors’ Association said that they’d continue their strike as long as the government withdrew from its decisions. Yesterday, there was zero trading, which has continued today as well.