Kathmandu. The government has decided to reduce the capital gains tax on the share market. The cabinet meeting held on Wednesday decided to reduce the capital gains tax on the profit from share trading.

Minister for Education and Sports Sasmit Pokharel, who is also the government spokesperson, said that the decision was taken to reduce the capital gains tax.

Unveiling the decisions of the Council of Ministers, Minister Pokharel said that the decision to reduce the capital gains tax on share trading has been made as per the ‘Capital Market Strengthening and Revival Action Plan 2083’ issued by the Ministry of Finance.

In the case of a natural person, the tax will be 3.5 percent on the profit amount of the interest held for more than 365 days and 5 percent on the profit amount of the interest owned for 365 days or less.

Earlier, 7.5 percent tax was levied on the profit amount of the ownership for more than 365 days and 10 percent on the gains of 365 days or less.

Investors have said that with this decision of the government, the morale of the stock investors has returned.

Analysts say that the government’s decision to reduce capital gains tax on share trading is welcome and this decision has boosted the morale of the stock market to return to normalcy. They have expressed confidence that the market will now grow.