November 23: The capital gains tax to be paid to the government by the investors of the secondary market of securities has decreased by more than Rs 135 million.

In a one-month period from mid-October to mid-November, the government earned more than Rs 8,41,54,000 in capital gains tax. This amount is less by Rs 13,54,24,000 compared to a month ago.

According to Suresh Neupane, information officer of CDSC, more than Rs 21,95,79,000 in capital gains tax were collected in mid-September to mid-October.

Neupane says that because there were fewer business days in the review month compared to a month ago, the capital gains tax earned by the government declined.

According to him, the government collected more than Rs 4,60,41,000 from short-term investors and Rs 2,69,18, 000 from long-term investors in the individual category during the review month.

He said that the government had collected more than Rs 15,76, 00,000 from short-term investors and more than 6,19,00,000 from long-term investors in the previous month from mid-September to mid-October.

The government collects tax by dividing the investors who deal in the secondary market of securities into two categories in case of individuals investors. Those who hold shares for more than one year are considered as long-term investors and those who hold shares for less than one year are considered as short-term investors. The government charges 7.5 percent capital gains tax from short-term investors and 5 percent from long-term investors. Institutional investors have to pay 10 percent capital gains tax. If the investor earns profit from securities trading, there is a provision to pay capital gains tax based on the weighted average cost.

Due to the public holidays in mid-October to mid-November due to the festivals of Dashain and Tihar, there were only 12 days of trading in the stock market. According to Nepal Stock Exchange Limited, the operator of the secondary market of securities, 30,98,82,749 units of shares worth more than Rs 10,21,73,00,000 were bought and sold in these 12 trading days. While the share market opened at 1,864.62 points in mid-October, it fell to 1,852 points on the last trading day inmid-November.