The budget for the upcoming fiscal year 2083/84 addresses long-standing demands from the capital market.
Ending years of ambiguity, the government has officially declared that the Capital Gains Tax (CGT) levied on the sale of listed securities will now be treated as the final tax starting next fiscal year.
Previously, a lack of clarity had caused persistent friction between investors and the tax administration regarding whether CGT cleared all tax liabilities. Under the current structure, which remains in place, investors pay:
7.5% CGT for shares held for less than one year.
5.0% CGT for shares held for more than one year.
By declaring this a final tax, the government has provided much-needed policy certainty, which is expected to boost investor sentiment and stabilize the secondary market.
