Investors Associations shun the weighted average CGT calculation procedure; Advises authorities to reconsider the method or they will come to streets again

Share Laganikarta Sangh Nepal and Share Laganikatra Dabab Samuha have issued a press notice stating their dissatisfaction regarding the new weighted average capital gain tax (CGT) calculation method issued by CDS and clearing that has been implemented from Shrawan.

The notice states, "Last year after the protest of Investors, it was decided that the weighted average will be calculated by taking Poush, 2072 BS as the base year. However, now that the time of implementation has come, the authorities have turned their face away from the consensus that was achieved last year." The notice further goes on to say that the capital market of Nepal has just entered the era of online trading and if investors have to go back to broker again and declare their buying information in paper form and thumb stamp, then that just indicates a step backward. The statement says, "The procedure implemented by CDS and clearing is inconvenient as well as unscientific and erroneous for investors."

The associations have, therefore, requested the authorities to take Poush 2072 BS as the base year for weighted average calculation and the 5% CGT to be taken as the final tax. In case the authorities stick to their current position then they have warned that the investors will have to once again come to streets to safeguard their rights.