Govt revokes increased CGT on share transactions after NEPSE slump
Summary
The government has cut the capital gains tax on share transactions to a maximum of 5 percent after the stock market continued to slump following the earlier hike. The reform plan also calls for changes to IPO rules, mutual funds, brokerage services, and a restructuring of NEPSE.
Key Points
- The Ministry of Finance has capped capital gains tax on share transactions at 5 percent under a new capital market revitalization plan.
- The holding period for banks and financial institutions’ investments in the secondary market has been reduced to 45 days from six months.
- SEBON will issue new IPO guidelines and develop rules for bond markets, ETFs, mutual funds, brokerage services, and other securities products.
- The government will restructure NEPSE and revise its indices, including the creation of a new fundamental securities market index.
