A misleading post was shared from the official Facebook page of former Prime Minister KP Oli about Nepal’s stock market. The post claimed that the NEPSE index, which was at 2,100 points in the year 2081 BS, had climbed to 2,800 points in 2082 BS.
However, this information is incorrect. Throughout the fiscal year 2081/82, the NEPSE index never dropped below 2,200 points on any trading day. In fact, the index had already crossed the 2,300 mark at the start of the year.
Biggest capital gains tax collection goes unnoticed
While the focus was placed on an inaccurate market jump, the real and record-breaking achievement of the stock market in 2081/82 went ignored, capital gains tax collection.
In this fiscal year alone, the government collected Rs. 16.54 billion in capital gains tax from share trading. This is the highest amount ever collected in Nepal’s stock market history.
To compare:
- In FY 2077/78: Rs. 14.06 billion was collected
- In FY 2080/81: Around Rs. 5.50 billion was collected
Month-wise breakdown of capital gains tax
Here’s how much capital gains tax the government collected month by month in 2081/82:
- Shrawan: Rs. 4.23 billion
- Bhadra: Rs. 2.57 billion
- Mangsir: Rs. 1.04 billion
- Magh: Rs. 1.05 billion
- Baisakh: Rs. 1.22 billion
- Jestha: Rs. 1.17 billion
- Ashar: Rs. 1.27 billion
In some months, the collection remained below Rs. 1 billion:
- Asoj: Rs. 586.5 million
- Kartik: Rs. 758.7 million
- Poush: Rs. 580.7 million
- Chaitra: Rs. 693.5 million
NEPSE Index and Market Performance
Over the course of the year, the NEPSE index increased by 560.04 points. On the first trading day of the fiscal year (Shrawan 1, 2081), the index stood at 2,310.59 points. By the end of the year, it had reached 2,870.63 points.
This steady rise in the market also led to an increase in government revenue.
Capital Gains Tax Rates
In Nepal:
- If shares are sold within one year, investors pay 7.5% capital gains tax on profit.
- If sold after holding for more than a year, the tax is 5% on profit.
Because tax collection depends on trading profit, when the market goes up, the government earns more from taxes. When it goes down, tax revenue drops.
