The government has decided to give tax breaks to manufacturing,
hydropower and tourism companies that get listed on the stock market. As
per Finance Ordinance 2070, such companies will be given a tax waiver
of 10% under the government’s plan to attract more diverse companies to
get listed at the NEPSE.
The ordinance offers similar incentive to technological companies that establish their business at the information technology park. Companies working in the field of software development, data processing, digital mapping, etc., can avail 10% waiver if they get listed at the secondary market.
The move comes amid growing concerns among investors about dominance of banks and finance institutions in the capital market even though 20 years have passed since the shares began to be publicly traded through Nepal Stock Exchange.
Under the existing laws, banks and insurance companies are obligated to issue shares among general public, but there is no such compulsion for manufacturing companies. In developed countries two-third of the capital market is occupied by manufacturing and information technology companies.
Though majority of companies in developed countries are listed, in Nepal companies prefer to take huge loans from banks and finance institutions rather than issue shares to general public, though it is the easiest way to expand capital.
src sharesansar
The ordinance offers similar incentive to technological companies that establish their business at the information technology park. Companies working in the field of software development, data processing, digital mapping, etc., can avail 10% waiver if they get listed at the secondary market.
The move comes amid growing concerns among investors about dominance of banks and finance institutions in the capital market even though 20 years have passed since the shares began to be publicly traded through Nepal Stock Exchange.
Under the existing laws, banks and insurance companies are obligated to issue shares among general public, but there is no such compulsion for manufacturing companies. In developed countries two-third of the capital market is occupied by manufacturing and information technology companies.
Though majority of companies in developed countries are listed, in Nepal companies prefer to take huge loans from banks and finance institutions rather than issue shares to general public, though it is the easiest way to expand capital.
src sharesansar
