Kathmandu. The government is going to collect more than 6 billion rupees in taxes from companies that have issued Further Public Offerings (FPOs). Finance Minister Dr. Prakasharan Mahat announced the tax on the income received from FPO through the budget of the financial year 2080/81, and the related companies have to pay 6.47 billion rupees in tax.

The financial year 2078/79 from the amount received by issuing shares at a premium price from the FPO in accordance with Section 56 (3) of the Income Tax Act, 2058, the tax on that amount will be 2080 If filed by November, the fee and interest will be waived,'' said in section 26 of the financial bill. With this arrangement of the government, now all those companies have to pay billions of rupees in tax.

According to the statistics of Nepal Stock Exchange (NEPSE), 14 companies have issued FPOs. Out of which 3 companies have issued FPOs with a face value of 100 rupees, so they do not have to pay any tax. Reliance Finance, Unique Nepal Microfinance, Gramin Bikas Microfinance have issued FPOs at face value.

Similarly, Shikhar Insurance, Nepal Investment Bank, Nepal SBI Bank, Nepal Life Insurance Company, Standard Chartered Bank, Premier Insurance Company, Butwal Power Company, NMB Bank, Nepal Bank and Citizens Bank have issued FPOs with added premium value. Companies which have issued FPOs at face value will not have to pay tax. However, the government has announced that if the shares are sold by adding a premium price to the face value, then the income received from the premium amount will have to be taxed.

Nepal Life Insurance Company sold the FPO at the most expensive price by adding the premium price. This company had sold 3,396,429 shares at Rs 1,425 per share. The company added 1000 rupees to the marked price of 100 rupees. The company had collected a premium amount of Rs 4 billion 10 crore 27 lakh 68 thousand 425 rupees. If 30 percent tax is imposed on that amount, the company will have to pay 1 billion 238 million 30 thousand rupees in tax.

Similarly, Standard Chartered Bank sold 25 lakh 58 thousand 140 shares at Rs 1,290 per share. The bank added 1,900 rupees to the face value of 100 rupees and collected a total premium of 3.4 billion 41 lakh 86 thousand 600 rupees. If 30 percent tax is imposed on that amount, the bank will have to pay Rs 91 crore 32 lakh 55 thousand 980 as tax.

Similarly, Nepal SBI Bank sold 67 thousand 768 shares FPO at Rs 971 per share. The bank added 871 rupees to the face value of 100 rupees and collected a total premium of 59 million 25 thousand 928 rupees. If 30 percent tax is imposed on that amount, the bank will have to pay Rs 1 crore 77 lakh 7 thousand 778 as tax.

Similarly, Savik's Premier Insurance Company sold 659,565 shares at Rs 799 per share. The insurance collected a total premium of 46 million 10 lakh 35 thousand 935 rupees by adding 699 rupees to the face value of 100 rupees. If 30 percent tax is imposed on that amount, it seems that the insurance company will have to pay a tax of 138.3 million 10 thousand 780 rupees.

Similarly, for the first time in the history of the capital market, Shikhar Insurance sold 5 lakh 10 thousand 988 shares at Rs 650 per share. The insurance collected a total premium of Rs. If 30 percent tax is imposed on that amount, the insurance will have to pay a tax of 843 million 13 thousand 20 rupees.

Similarly, Nepal Investment Bank sold 90,69,388 shares at Rs 601 per share. The bank added Rs 501 to the face value of Rs 100 and collected a total premium of Rs 4.54 billion 37 lakh 63 thousand 388. If 30 percent tax is imposed on that amount, the bank will have to pay 1 billion 36 million 31 million 29 thousand 16 rupees in tax. Which is the most among the organizations issuing FPOs.

Similarly, Butwal Power Company sold 4 million 81 thousand shares at Rs 501 per share. The company added Rs 401 to the face value of Rs 100 and collected a total premium of Rs 1 billion 63 crore 64 lakh 81 thousand. If 30 percent tax is imposed on that amount, it seems that the bank will have to pay 499 million 44 thousand 300 rupees in tax.

Similarly, NMB Bank sold 1 crore 14 lakh 15 thousand 163 shares at Rs 333 per share. The bank added 233 rupees to the face value of 100 rupees and collected a total premium of 2 billion 65 crore 97 lakh 32 thousand 971 rupees. If 30 percent tax is imposed on that amount, the bank will have to pay 797.9 million 19 thousand 893 rupees in tax.

Similarly, Nepal Bank sold 1 crore 76 lakh 84 thousand 858 shares at Rs 280 per share. The bank added 180 rupees to the face value of 100 rupees and collected a total premium of 3 billion 18 crore 32 lakh 74 thousand 440 rupees. If 30 percent tax is imposed on that amount, the bank will have to pay Rs 95 crore 49 lakh 82 thousand 332 as tax.

Similarly, Citizens Bank sold 463,826 shares at Rs 200 per share. The bank added 100 rupees to the face value of 100 rupees and collected a total premium of 4 crore 63 lakh 82 thousand 600 rupees. If 30 percent tax is imposed on that amount, it seems that the bank will have to pay a tax of 1 crore 39 lakh 14 thousand 780 rupees.

Similarly, Pokhara Finance sold 983,682 shares at Rs 2,200 per share. Finance added 120 rupees to the face value of 100 rupees and collected a total premium of 118 million 41 thousand 840 rupees. If 30 percent tax is imposed on that amount, it seems that the finance will have to pay a tax of 35.4 million 12 thousand 552 rupees.