Kathmandu: The Government of Nepal has officially designated Capital Gains Tax (CGT) as a final withholding tax, bringing a definitive end to a long-standing legal and administrative controversy that had created significant uncertainty for investors. This policy shift is expected to simplify the tax filing process and provide much-needed clarity for the capital market and real estate sectors, which have been advocating for this change for years.
Finance Minister Dr. Swarnim Wagle made this landmark announcement on Friday while presenting the federal budget for the upcoming fiscal year 2083/84 during a joint session of the Federal Parliament.
By classifying CGT as a final tax, the government aims to reduce the administrative burden on taxpayers and encourage more robust participation in the investment landscape.
During his budget speech, Dr Waglé also addressed the broader economic difficulties facing the nation, citing the instability of international supply chains, a slowdown in domestic production, and insufficient investment in the productive sector as primary hurdles. He further noted that the prevailing lack of public trust in state institutions poses a significant challenge, yet he reaffirmed the government’s commitment to tackling these issues through strategic reforms and disciplined fiscal management.
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