Finance Minister Dr. Swarnim Wagle has stated that there should be no confusion regarding the government's decision to treat capital gains tax on securities transactions as a final tax, emphasizing that the reform directly addresses one of the stock market's longest-standing concerns.

Speaking at a post-budget press conference, Wagle said that investors had consistently urged the government to bring certainty to the tax system, arguing that predictability was more important than the tax rate itself.

According to the Finance Minister, several investor groups had approached the government with a clear message: they were willing to pay even higher taxes if the government permanently resolved the uncertainty surrounding capital gains taxation.

“Many investors came to Singha Durbar and told us they were prepared to pay an additional five percentage points in tax. Their primary request was to make it final and remove the uncertainty hanging over them,” Wagle said.

He explained that the government's latest budget has formally established capital gains tax as a final tax, ending years of debate and uncertainty within Nepal's capital market.

Defending the revised tax structure, Wagle argued that Nepal continues to maintain a relatively investor-friendly taxation framework compared to regional markets.

Under the new arrangement, the capital gains tax rate for short-term investors has been increased from 5 percent to 7.5 percent, while the rate for long-term investors has risen from 7.5 percent to 10 percent.

The Finance Minister noted that despite the increase, Nepal's rates remain lower than those in neighboring India, where capital gains taxes can reach significantly higher levels depending on the investment period.

He reiterated that the government's objective is not merely to collect additional revenue but to establish a stable and transparent tax framework that encourages long-term investment and strengthens confidence in Nepal's capital market.

The clarification is expected to be welcomed by many investors who have long sought certainty regarding their tax obligations and the future treatment of capital gains from share transactions.