KATHMANDU: The Nepal government’s capital gains tax (CGT) collection from the stock market dropped by 37.50% to Rs 9.54 billion during the first 11 months of the current fiscal year, compared to Rs 15.27 billion in the same period last year.

This sharp decline follows a volatile year where the NEPSE index fluctuated around the 2700-point mark, failing to regain the bullish momentum of the previous year.

The slowdown is highlighted by the latest monthly collection (mid-May to mid-June), which plummeted to just Rs 431.8 million from Rs 1.73 billion recorded two months prior.

The decline persists despite a new budget policy introduced on May 29, which designated CGT as the final withholding tax—a structural change welcomed by investors.

However, the budget also raised tax rates from 5% to 7.5% for long-term traders and from 7.5% to 10% for short-term traders.
As CGT is only levied on profitable transactions, the continuous drop in revenue underscores that investors are facing widespread losses in the current bearish climate.