SATV Kathmandu Sept 22: The government’s revenue collection from capital gains tax (CGT) declined by a notable amount last month due to the significant fall in share transactions during the period.

According to CDS & Clearing, the share investors paid CGT worth Rs 601.49 million during mid-August and mid-September of the current fiscal year (FY). The amount was 77 percent less compared to the CGT of Rs 2.57 billion in the same period last FY.

Likewise, the CGT figure of last month was also less than one-third of the amount that the government collected in the previous month. During mid-July and mid-August, the CGT amount stood at Rs 2.15 billion.   

Investors are required to pay 7.5 percent tax on profits earned within a year and 5 percent on profits out of the shares held for longer periods. The government’s earning in the CGT surges when there is an increase in turnover at the stock market.

The Nepal Stock Exchange (NEPSE) index that stood at 3,002.07 points as of the last FY end kept declining almost for the next two months. The index declined to as low as 2,672.25 points, while the daily turnover also plunged to Rs 4.09 billion in the review month.

Till date, the CGT was recorded highest ever at Rs 4.24 billion in the first month of the last FY. The government’s earning under the heading was overall Rs 16.54 billion in FY 2024/25.