Ministry of Commerce to Withdraw Proposed 1% Share Transfer Fee After Public Criticism

The Ministry of Industry, Commerce, and Supplies has decided to withdraw a controversial proposal that would have added a 1% fee on large stock transactions. This rule was originally included in the draft of the new Company Act 2083, which was recently made public for discussion.

According to Section 89 of the drafted law, anyone buying or transferring shares valued at 2.5 million Nepalese Rupees or higher would have been required to pay a 1% transfer fee. This fee was intended to be collected when updating the share ownership records at the Office of the Company Registrar.

However, the proposal faced heavy criticism and strong opposition from the public and investors immediately after the draft was released. In response to this backlash, the ministry has decided to completely remove the provision from the upcoming law.