Finance Minister Responds to Budget Critics: ‘Those Who Do Not Show Extra Affection’

Summary: Finance Minister Dr. Swarnim Wagle clarified that the capital gains tax on shares is final and that a 5 percent tax has been imposed for development of the electricity infrastructure. He stated that the main focus of the upcoming fiscal year’s budget is to expand the middle class and uplift low-income groups to the middle-class level. The government has projected to borrow a total of NPR 6.57 trillion and generate revenue of NPR 15.8 trillion in the next fiscal year.

Kathmandu, 17 Jestha — Finance Minister Dr. Swarnim Wagle referred to budget critics as ‘those who do not show extra affection.’ During the press conference held after the budget announcement, he responded by categorizing people as those who love, show extra love, and those who do not show extra love.

Although Dr. Wagle declared in his budget speech that the capital gains tax on securities transactions is final, provisions made in the Income Tax Act through the Economic Bill 2079, including some thresholds, have led to confusion among share investors. The minister was unable to fully clarify this confusion during the press conference. “Capital gains tax is final; investors were lined up, ready to pay an additional 5 percent,” he said.

In response to investors’ demands, the capital gains tax rate has been generously finalized by increasing from 5 percent to 7.5 percent, and from 7.5 percent to 10 percent, he added. Dr. Wagle admitted he does not understand why the confusion about the tax persists, perhaps due to those who ‘do not show extra affection.’

Despite some ‘confusion’ concerning incomes below NPR 4 million, the minister insists that income derived from shares is final. He explained that taxpayers with income from other sources list capital gains at the time of filing income tax returns, so the tax deduction appears automatic and final.

He acknowledged the possibility of errors or mistakes and assured corrections will be made where necessary but criticized that, “This confusion has been spread deliberately, misinterpreted, and false questions have been raised, which is unacceptable.”