No New 1% Fee on Regular Stock Trading - MP Hari Dhakal

A recent social media post by Rastriya Swatantra Party leader and Member of Parliament Hari Dhakal has clarified growing confusion regarding a rumoured 1% tax on stock trading. Addressing widespread debates on the matter, Dhakal confirmed that stockbrokers will not be charging any additional 1% tax or fee on daily, regular secondary market transactions conducted through the Trade Management System (TMS) or the Nepal Stock Exchange (NEPSE). He emphasized that the final tax applicable to standard secondary market transactions remains the existing Capital Gains Tax (CGT) of either 7.5% or 10%.

According to the clarification, the 1% fee applies strictly to specific "Off-Market Transfers" valued at Rs. 25 lakhs or above. These refer to direct name transfers processed outside the regular trading platform through CDS and Clearing Limited (CDSC), which operate under policies outlined by the government or the Securities Board of Nepal (SEBON). Examples of such transfers include gifts, inheritance transfers following a person's death, or massive internal company share transfers.

Investors engaged in regular, daily on-market trading via TMS do not need to worry about any hidden 1% additions. Their transactions will continue to incur only the standard predefined charges, which include the broker commission, SEBON fees, DP fees, and the usual Capital Gains Tax. Urging the public not to succumb to fear or rumours generated by misleading social media post, Dhakal advised investors to rely solely on official information and maintain patience while trading.