Government Declares Capital Gains Tax on Listed Shares as Final Tax

The government has announced that the capital gains tax levied on the sale of shares of listed companies will now be treated as a final tax.

Finance Minister Dr. Swarnim Wagle made the announcement while presenting the national budget for the fiscal year 2083/84 in a joint session of the Federal Parliament on Friday.

“In the case of securities transactions of listed companies, I have made arrangements for the capital gains tax to be treated as final,” Minister Wagle said during his budget speech.

With this provision, investors will no longer be required to pay additional tax on income once the capital gains tax has been settled. The income will not be included in the individual’s taxable income for further tax calculation.

Just 15 days before the budget presentation, representatives of the share market had met Finance Minister Wagle, requesting that capital gains tax be made final. During that meeting, the minister had reportedly assured them that their concerns would be addressed.

Under the previous system, capital gains tax was applied at different rates depending on the holding period of shares. Investors holding shares for less than one year paid 7.5 percent tax, while those holding for more than one year paid 5 percent.

With the new announcement, once capital gains tax is paid on profits from share trading, no further tax liability will apply to that income.