Kathmandu. The state’s profit tax from the stock market has been greatly diminished. The capital gains tax received by the state has decreased by 37.42 percent in the last fiscal year as compared to the previous fiscal year.

In the fiscal year 2081/82, the state had collected Rs 16.54 billion in capital gains tax from the stock market. In the same period of the last FY, the profit tax decreased by 37.42 percent to Rs 10.35 billion.

According to the CDSC, the highest amount of capital gains tax was collected in the last fiscal year, which was Rs 2.15 billion. Similarly, in August, it was Rs 60,14,99,464. Similarly, Rs 243,65,920 was collected in October, Rs 380,05,99,290 in October, Rs 62,9820,940 in November, Rs 584,435,377 in December, Rs 1.29 billion in January and Rs 551.58 million in February.

Similarly, the EPFO collected Rs 1.73 billion in March, Rs 936.168 million in April, Rs 431.81 million in May and Rs 806.851 million in June. During this period, the market has decreased by 273.15 points. The market is at 2870.95 points on July 17, 2002. On the last day of the last fiscal year, i.e. July 14, 2083, the market was at 2597.80 points.

Investors who hold and sell shares from the stock market for a period of one year or less will have to pay 7.5 percent capital gains tax to the state. There was a provision to pay 5 percent profit tax on the profit earned on the shares sold after holding it for one year or more.

However, the profit tax has increased from the current fiscal year.

Capital gains tax is affected due to fluctuations in the trading volume of the stock market. When the market falls, the capital gains tax rises less and when the market rises, it rises more.