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Govt Plans Mandatory Listing of Real Sector in Stock Market

  1 min 19 sec to read

May 8: The Finance Ministry is preparing for mandatory listing of real sector companies in the stock market.  “Despite the tax discounts, there is no increment in participation of real sector companies. The increase in tax discount rates cannot attract such companies,” says Rajan Khanal Revenue Secretary of Ministry of Finance (MoF).

Secretary Khanal made the comments in a discussion program organised by Securities Board of Nepal (SEBON) on Saturday. According to him, the plan is likely to include raising tax subsidies in the first phase and if it does not work then it will be made compulsory for the companies of certain sectors to be listed in the stock market. At present, there is a provision of 10 percent discount on institutional income tax if companies of particular sector enter the stock market.

However, such provision has not been successful to lure real sector companies in the market. Meanwhile, MoF has also come up with a plan to provide tax subsidy for two years citing the ineffectiveness of the existing policy. “We will provide such subsidy only after ensuring that it increases the total production of a company and shares of such company is easily traded,” mentions Dr Bashudev Sharma, Deputy Secretary of the ministry. He presented tax related data of some countries and said that all transactions of Nepali stock market are not as unscientific as per international trends.

 

 

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