NEPSE Index Loses 109 Points In Last 3 Working Days ; Uncertainty In Taxation Policy Led Panic Sell In Market

Wed, May 31, 2023 3:04 PM on Stock Market, Latest,

-ShareSansar

The NEPSE index closed at 1,849.79 today after losing 38.83 points from the last trading day's closing. This is a loss of 2.06%. The index lost around 109.37 points since this Sunday.

On Monday, unveiling the budget for the forthcoming financial year, Finance Minister Dr. Prakash Sharan Mahat announced some new tax reforms. According to the Director General of the Inland Revenue Department (IRD) Dirgha Raj Mainali, misinterpretation of the new legal provisions with regard to the restructuring of the incumbent taxation system in the share market has led to panic selling and subsequently, the market has plummeted 91.99 points in two days (Sunday & Tuesday). The new provisions for taxation bring FPO premiums and merger and acquisition gains under the scope of taxation. However, banking and financial institutions, hydro companies, and insurance companies have always expressed a firm stance and acknowledge such gains as investments rather than taxable profits.

One of the key issues raised by investors was the treatment of losses incurred during stock market transactions. IRD Dir. Ge. Mainali had earlier addressed this concern by announcing a new provision that allows investors to carry forward losses for up to seven years and rebates additional taxes after adjusting profit/loss to taxpayers, which is in the best interest of the market.

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IRD Dir. Gen. Mainali Clarifies Ambiguity Surrounding New Capital Gain Tax Arrangements; Claims Unawareness Led to Panic Selling in NEPSE

Today the index opened at 1,884.49 and then made the intraday high at 1,8 93.84. In contrast, it went as low as 1,844.32 and ultimately closed at 1,849.79.

262 scrips traded hands via 36,893 transactions. A total of 8,736,128 shares exchanged hands amounting to Rs. 2.31 Arba in turnover amount. This is a little lower than the last trading day's turnover of Rs. 2.34 Arba.

Prabhu Bank Limited Promoter Share (PRVUPO) shares traded the most and had the highest turnover of Rs. 21.24 crores closing at a market price of Rs. 462 per share.