Kathmandu: In response to the government's directive to collect revenues generated from bargain purchase gains, including FPO (follow-on public offer) premiums, mergers and acquisitions, and auction share sales, a sum exceeding Rs 12.8 billion has been deposited into the state treasury within two days. The deadline for tax payment is today at midnight, with a provision for exemption from fines for those who settle their dues by the deadline.

The collection, made until Friday and Saturday (4 pm), comes after the Office of the Auditor General consistently raised concerns, starting with its 57th annual report in 2077 BS, regarding tax evasion related to FPO premiums, bargain purchase gains from mergers and acquisitions, and auction share sales. Despite the repeated mentions in the subsequent reports, the Ministry of Finance and the Inland Revenue Department had not addressed the issue.

Taking cognizance of the matter, Finance Minister Dr. Prakash Sharan Mahat implemented a provision that allowed companies to pay taxes on FPO premiums, bargain purchase gains, and auction share sales by December 16 without incurring fines and interests. The move aimed to encourage timely revenue payments.

Subsequently, 16 commercial banks challenged the minister's decision by filing a case in the Supreme Court, alleging that the government's action was unconstitutional. On Thursday, the constitutional bench, led by Chief Justice Bishwoambhar Prasad Shrestha, ruled in favor of the government, declaring that the minister's decision to grant exemptions through the Financial Act was lawful.