Tag: concerns

  • Challenges and Prospects of the Newly Constructed Business Tower in Damak: A Critical Analysis

    Challenges and Prospects of the Newly Constructed Business Tower in Damak: A Critical Analysis


    The recent unveiling of a multi-billion-rupee business tower in Damak by the government has ignited debates over its practicality, given reports of tepid interest from prospective commercial tenants. The towering edifice, standing 18 stories tall and spearheaded by CPN-UML chairman and former Prime Minister KP Sharma Oli, awaits its official inauguration amidst uncertainties surrounding its future occupancy.

    Confirming the tower’s completion, Maniram Gelal, Secretary of the Ministry of Urban Development, affirmed its purpose to host commercial activities, with the topmost floors earmarked for sightseeing ventures. However, despite its meticulously designed infrastructure geared towards commercial viability, the premises have yet to witness any formal commitment from potential lessees.

    Sudeep Poudel, the project manager overseeing Urban Development and Building Construction, acknowledged the absence of concrete initiatives for floor reservations, despite some informal expressions of interest. Presently, the tower predominantly serves as a backdrop for outdoor photography enthusiasts, with scant foot traffic observed indoors.

    Nestled approximately 6 kilometers west of Damak Bazaar, concerns loom over the operational overheads associated with running businesses within the tower precincts. An official from the Urban Development and Construction Department shed light on the logistical challenges of conducting enterprises at a remove from the established market nucleus, hinting at diminished profitability prospects for prospective occupants.

  • NEPSE Index Drops by 2.06% Amidst New Tax Reforms and Investor Concerns

    NEPSE Index Drops by 2.06% Amidst New Tax Reforms and Investor Concerns


    The NEPSE index experienced a decline today, closing at 1,849.79, which marked a decrease of 38.83 points compared to the previous trading day. This equated to a loss of 2.06% in the index value. Over the course of the week, the index has witnessed a decrease of approximately 109.37 points since Sunday.

    During the week, the Finance Minister, Dr. Prakash Sharan Mahat, presented the budget for the upcoming financial year, which included several new tax reforms. However, the introduction of these reforms caused some confusion and misinterpretation regarding the restructuring of the existing taxation system in the share market. As a result, panic selling occurred, leading to a decline in the market. Within just two days (Sunday and Tuesday), the market plummeted by 91.99 points.

    One of the concerns raised by investors pertained to the treatment of losses incurred during stock market transactions. In response, the Director General of the Inland Revenue Department (IRD), Dirgha Raj Mainali, addressed this issue by announcing a new provision. This provision allows investors to carry forward losses for up to seven years and offers additional tax rebates after adjusting profit or loss for taxpayers. This measure is seen as a positive step to alleviate market concerns and promote investor confidence.

    The new tax provisions announced by the Finance Minister include bringing FPO premiums and gains from mergers and acquisitions under the scope of taxation. However, certain sectors such as banking and financial institutions, hydro companies, and insurance companies have consistently maintained their position that such gains should be treated as investments rather than taxable profits.

    The market’s decline can be attributed to the uncertainties and apprehensions arising from the new tax reforms. It is important for investors to understand and interpret the provisions accurately to avoid any unnecessary panic selling or volatility in the market. The IRD’s efforts to address investor concerns and provide favorable provisions, such as carrying forward losses and tax rebates, aim to mitigate the impact of the reforms and maintain stability in the market.