Kathmandu. Finance Minister Dr. Swarnim Wagle is trying to influence the stock market by flouting policy stability.

Finance Minister Dr. Wagle brought the 21-point Capital Market Strengthening and Revival Action Plan 2083 on Monday night.

After the stock market started falling continuously for a long time, Minister Wagle said that he was preparing to bring a plan to improve the market.

He brought a 21-point action plan on Monday night as he said. Among the plans brought, the issue of capital gains tax has become very controversial.

Point 20 out of 21 states that the existing tax system will be amended as follows to make it investment-friendly by encouraging long-term investment in the stock market.

(a) In the case of the benefit derived from the disposition of the interest of the entity listed in the Board, the body operating the stock exchange market shall maintain 3.75 percent of the profit amount of the interest owned by the resident natural person for more than three hundred and sixty five days and 5 percent of the profit amount of the interest owned by the resident natural person for a period of more than three hundred and sixty five days or less.

(b) Adjustment of loss from disposal of listed securities: If a resident natural person or resident entity who has paid tax pursuant to clause (a) of Sub-section (2) of Section 95 has to suffer the loss computed pursuant to Section 37 from the disposal of listed securities in any income year, such loss shall be adjusted from the disposal of listed securities in the same income year and the capital gains tax shall be levied as final tax at the mentioned rate only if the profit and loss are adjusted through the transaction and settlement system.

The government had increased the capital gains tax while presenting the budget for the current fiscal year. The short-term and long-term gains tax has been increased in the stock market.

Earlier, the profit tax on long-term transactions was increased from 5 percent to 7.5 percent and the profit tax on short-term transactions was increased to 7.5 percent to 10 percent. At that time, some investors were protesting saying that the profit tax had become expensive. However, Minister Wagle remained silent after repeatedly reminding the investors that this was the last one.

In the action plan presented by the minister on Monday, it has been said that in the case of a natural person, 3.75 percent of the profit amount of the interest owned for more than 365 days and 5 percent of the profit amount of the interest owned for 365 days or less. Investors in the stock market are excited to reduce the profit tax. This is also the long-standing demand of investors.

But generally, there is no policy stability when the tax rates are arbitrarily driven. Industrialists have been demanding policy stability for a long time. Finance Minister Wagle has started using arbitrary tax rates. This act of the Finance Minister is said to be immature, uncritical, and a product of policy instability.

The government can use the tax rates as per the need. It can be approved by the cabinet meeting and implemented.

However, Minister Wagle has been accused of indulging in influencing the market by using the capital gains tax imposed in the share market.

A veteran investor says that Wagle has brought a 21-point action plan after the market could not pick up pace even after the formation of the RSP government and the finance minister of the world.

“Looking at the current market situation, there is no fault in the action plan brought by the minister. It is necessary to make the market like the market,” said an old investor, “The profit tax can also be used by the government when it is needed. But I do not know when it will be implemented. It is wrong to bring it all of a sudden. It should have been implemented immediately after it was brought. ”

According to the investors, it seems that a person like the minister of state is trying to increase the market by force.

The investors argue that it is not in the long-term interest of the market for those in the upper echelons of the state to adopt such a policy and try to influence the market.

The investors claim that although the Finance Minister has brought a 21-point action plan with the policy of increasing the stock market at any cost, the issue of profit tax is very immature and it shows that the government is not serious about policy stability.

He argues that if the minister continues to speak his mind on the issue of tax, then the day may come when the Prime Minister will be more watchful of the minister.

He claimed that the Prime Minister will meet the representatives of the private sector and say that he will maintain the corporate stability, and the question will also come up as to how ready Minister Wagle is to take responsibility if the policy taken by the minister is not approved by the Council of Ministers in the future.

He has made a loan promise to the investors to influence the market and the investors have demanded that such things should not be done anymore.