Capital gains tax

A capital gains tax (CGT) is a tax on capital gains, the profit realised on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realised from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.

Mario Draghi, president of the European Central Bank and chairman of the European Systemic Risk Board, is among those sounding the alarm over the dip in productivity growth, potentially leading to declines in per capita income and output. Photo: EPA-EF

Rethink needed on taxes in era of intangible investments

As those profiting from technological progress are increasingly paid in stock options, and companies invest more in intangible assets like data, branding and software, a change in tax rates may be necessary to pay for public services.