PM Prachanda Directs to Halt Tax on Further Public Offering (FPO)

Prime Minister Pushpa Kamal Dahal 'Prachanda' has directed the stakeholders to postpone the decision on imposing a tax on share premium amount sold through the further public offering (FPO). The PM has also asked to seek a long-term solution to this issue.

The PM issued the such directive after the Confederation of Nepalis Industries (CNI) and Nepal Bankers' Association drew the PM's attention regarding the impacts of the taxation on the share's premium amount.    

During the meeting with the business leaders, PM Prachanda vowed to advance the process to address this issue for the long term.

The banks and financial institutions (BFIs) had increased their paid-up capital through the FPO as per the directive of the central bank.

During that period, there was no taxation on FPO but the 58th annual report of the Office of the Auditor General mentioned that the FPO share's premium amount should come under the ambit of tax while concluding that the tax amount should be paid from such companies.