The government collected Rs 1.29 billion in Capital Gains Tax (CGT) from share market transactions between mid-January and mid-February, more than double the Rs 584.3 million collected in the previous month.
According to CDS and Clearing Limited, CGT revenue increased by Rs 707.6 million during the review period. The sharp rise was driven by a surge in secondary market activity, with daily turnover climbing as high as Rs 14.16 billion.
Of the total CGT collected, Rs 898.09 million came from short-term stock trading at the Nepal Stock Exchange (NEPSE). Long-term investors contributed Rs 256.22 million, while institutional investors generated Rs 137.59 million in tax revenue.
On a year-on-year basis, CGT revenue for the month was Rs 234 million higher than in the corresponding period last fiscal year, when the government collected Rs 1.057 billion under the same heading.
In total, the government mobilized over Rs 5.88 billion in CGT from secondary market transactions during the first seven months of the current fiscal year. However, this figure is 46 percent lower than the Rs 10.87 billion collected during the same period in FY 2024/25.
At the beginning of the current fiscal year, CGT collection stood at Rs 2.15 billion in the first month. The figure declined steadily in subsequent months, largely due to the impact of the Gen Z movement, dropping to as low as Rs 243.65 million between mid-September and mid-October.
Under existing tax rules, short-term investors pay 7.5 percent tax on profits earned within a year, while long-term investors pay 5 percent on gains from shares held for longer periods. Institutional investors are subject to a 10 percent CGT on share transaction profits.
