Govt rolls back its decision to introduce new CGT formula

Kathmandu, Jun 6: The government has rolled back its decision to introduce new formula to calculate capital gains tax on rights and bonus shares following criticisms from all quarters.

The Ministry of Finance has circulated a letter to the Inland Revenue Department directing it to calculate the capital gains tax on rights and bonus shares under the previous method following protests by investors and share brokers, said Jhakku Prasad Acharya, a staffer at the Finance Ministry.

Investors had hit the streets following the government’s decision to introduce new CGT formula to calculate tax on the share transaction. Share market was badly affected following the investors’ protest. (The Republica)