Capital Gain Tax Drops 37.5% as Market Slides After New Government Takes Office

The decline in Nepal's stock market over the current fiscal year has taken a clear toll on government revenues from capital gain tax. In the first 11 months of fiscal year 2082/83, the government collected Rs 9.54 billion in capital gains tax from share trading, a drop of 37.5% compared to Rs 15.27 billion collected during the same period last fiscal year 2081/82.

The slump was especially sharp in the month of Jestha (May/June 2026), when the government received only Rs 43.18 million in capital gains tax, down 63.35% from the same month the previous year. The month before, Baisakh, had brought in Rs 93.61 million.

The stock market had been on an upward trend following the House of Representatives election on Falgun 21 (March 2026), but began falling again after Prime Minister Balendra Shah's government took office. 

Adding to investor concerns, the government has announced through the upcoming fiscal year's budget that the capital gains tax on share trading will be raised by 2.5 percentage, bringing it to 10.00% for short term trading from 7.5% and 7.5% for long term trading from 5.0%.