3 Investors’ Associations issue joint press release condemning IRD’s new capital gains tax circular; urges investors not to trade unless government backs out

Nepal Investors’ Forum, Share Laganikarta Sangh Nepal and Nepal Pujibazar Laganikarta Sangh have issued joint press release expressing disappointment and disapproval of the Inland Revenue Department’s circular regarding Capital Gains Tax calculation on bonus and right shares. The organizations have also accused that the latest move fails to respect the basic principle of taxation, which has discouraged investors towards the capital market.

“Going against the universal principle of taxation of levying capital gains tax only in income and profits, the new rule directs investors to pay tax even when selling at a loss—which must be the first-of-its-kind tax system in the whole world”, says the press release. The statement further says that these charges are not tax, but are “service fees” instead.

The organizations have urged the government to take back the decision, and has also urged all investors not to trade unless the government has addressed the situation.

Protests begin at NEPSE premises

Joint protest programs have started at Nepal Stock Exchange premises in Singh Durbar Plaza.