Kathmandu. Capital market investor associations have expressed interest in the budget for the upcoming financial year 2081/82. Various 8 organizations issued a joint statement informing about the amendments to be made in the Income Tax Act.
They have said that they are confident that such policies will be implemented in the budget that will support the capital market of Nepal, which is currently improving after the Covid-19. It is stated in the statement that if the demands raised by the investors for a long time are not addressed and if there is a dual tax policy, the investors will protest strongly.
Section 95A (2)(A) of the Act is requested to be amended. In that section, in the case of the profit obtained from the nature of the interest of the entity listed in the Nepal Securities Board, in the case of a resident natural person, 5 percent of the profit amount of the interest owned for a period of more than 365 days and 7 percent of the profit amount of the interest owned for a period of 365 days or less. .5 percent advance tax to be collected’ is mentioned.
It has been requested to amend the legal provision in that section and ‘make a legal provision that the said tax is not an advance tax but a final tax deduction and also amend the schedule of the Income Tax Act accordingly’. It is mentioned in the statement that the amendment is necessary to encourage individual securities transactions and to simplify tax deduction and documentation.
Similarly, short-term investors (within 365 days) of 5 percent and long-term investors (more than 365 days) have been asked to maintain 3 percent capital gains tax.
As the investors’ morale will be high with this amendment, the transaction amount will increase and the government’s revenue will increase, it is mentioned in the statement.
