Stockbrokers to resume trading on SundayStockbrokers have agreed to end their protest and resume trading at Nepal Stock Exchange (Nepse), the only capital market of the country from Sunday.
Stockbrokers have agreed to end their protest and resume trading at Nepal Stock Exchange (Nepse), the only capital market of the country from Sunday.
Stockbrokers, who had launched a protest to condemn the government’s decision to bring in stockbrokers to value added tax (VAT) regime, agreed to resume their work after holding a meeting with the revenue secretary.
Stockbrokers had completely halted stock transactions on Thursday after the Inland Revenue Offices (IROs) directed two stockbrokerages to clear the due VAT levied on commission amounts of the last four years.
The IROs on Wednesday sent letters to Investment Management asking to clear dues of Rs15 million. Similarly, Sundhara Securities was asked to submit VAT amount of Rs6 million. The IROs’ move took brokerage companies by surprise as VAT was never levied on commission generated by stockbrokers before.
Showing their disagreement, the stockbrokers declined to take purchase and sale orders from the investors on Thursday.
A day after they launched the protest, stockbrokers were summoned by Revenue Secretary Shishir Dhungana.
During the meeting held on Friday, the Ministry of Finance said it would not roll back its decision to slap VAT on commission generated by stockbrokers.
However, the ministry agreed to review the modality of payment of the due amount of last four years which led to the end of the protest by the stockbrokers.