Capital market reforms draw mixed response as investors flag tax inequities

Key Points

• The government introduced a final Capital Gains Tax on listed securities with increased rates for both short-term and long-term investors.
• Reforms aim to modernize the Nepal Stock Exchange and allow Non-Resident Nepalis to participate in the secondary securities market.
• Experts praised tax clarity but expressed concerns over tax inequities and structural shortcomings in the capital gains tax system.
• Despite supportive policies and liquidity, weak corporate performance and investor confidence have kept the stock market sluggish.