The managers of banks and financial institutions have become dissatisfied at this time. The directors and investors of the bank have expressed their opposition to the implementation of the unreasonable tax policy in the budget of the next financial year brought by the government.

Bank managers and businessmen are protesting after the government announced tax on income from Further Public Offering (FPO) and capital gains received during mergers and acquisitions. With the government taking such a decision, not only Nepali investors but also foreign investors have become angry.

Finance Minister Dr. Prakash Sharan Mahat is being criticized and opposed. In addition, bank managers are warning that they will go to court if the government does not withdraw the tax policy. However, the government is not ready to back down from its decision. On the contrary, Finance Minister Dr. Mahat suggested going to court.

If any entity does not file tax by including the amount of dividend distributed as bonus shares to the beneficiary from the amount received by issuing shares at premium price from the FPO until the financial year 2078/79 in accordance with Section 56 of 930 of the Income Tax Act, 2058, the tax due on that amount will be taxed until November 2080. Fees and interest will be waived if filed,' said in Section 26 of the Economic Bill.

Foreign investors have also warned that they will withdraw their investments due to the government's wrong policy. Foreign banks own shares in Himalayan Bank, NMB Bank, Nabil Bank, Nepal SBI Bank, Everest Bank and Standard Chartered Bank. Standard Chartered Bank and Nepal SBI Bank seem to be the most affected. Also, it seems that the foreign investors of Himalayan Bank, NMB Bank and Nabil Bank will be affected due to the merger.

According to the source, Standard Chartered Bank has met with the top government officials and warned them to withdraw their investment, saying that they have imposed tax on the amount that has paid all taxes and distributed dividends after 7 years. However, when the Nepal Rastra Bank instructed to increase the paid-up capital of commercial banks from 2 billion to 8 billion, Standard Chartered Bank said to leave Nepal. Later, Standard Chartered issued the FPO after an unannounced agreement between the two parties on the method that the National Bank agreed to issue FPO at a premium price and Standard Chartered Group raised 8 billion capital without investing additional capital.

According to the source, the officials of the bank went to the Ministry of Finance and expressed their displeasure, saying that since the business was approved by the relevant government agencies 7 years ago and the taxes due at that time had been paid, new taxes could not be imposed.