Government ready to reconsider tax system on shares, Finance Minister hints at removing LTCG or STT

Vishnu Bhardwaj’s report for Obnews-

Govt Hints at Reconsidering LTCG: Finance Minister Nirmala Sitharaman has said that in view of the huge losses being faced by retail investors in the Indian stock market due to tax burden, the central government is ready to reconsider the tax system. The Finance Minister said this in response to the questions of journalists in Mumbai on Monday. When the Finance Minister was asked that ever since the government has imposed Long Term Capital Gain (LTCG) on investment in shares and increased the Securities Transaction Tax (STT), foreign investors (FIIs) have been withdrawing huge capital from the Indian market (Rs 6 lakh crore in the last two years and Rs 2.40 lakh crore so far this year).

Along with foreign investors, the confidence of crores of retail investors is also beginning to waver. In view of this worrying situation, the country’s big investors have started demanding changes in the tax system, so will the government pay attention to their views? On this, Finance Minister Sitharaman said that we are ready to listen to investors on this issue and any issue related to the market and if necessary, we can also reconsider these taxes. In fact, the Indian stock market was in recession even before the Iran-America war.

Crores of retail investors facing huge losses

Despite the rapid growth of the country, the Indian market has been suffering from recession for the last two years, most of the share prices are facing heavy losses ranging from 30 to 50 percent and crores of retail investors have suffered huge losses. And the biggest reason for this recession is heavy and double taxation. Earlier the government imposed 10% LTCG and increased it to 12.5%. Then short term capital gains (STCG) was increased from 15% to 20%. If this did not satisfy me, I increased the STT further.

Also read: Share Market Updates: Share market fell today, Sensex fell by 200 points, Nifty also below 24000.

Finance Minister realized

Due to this heavy tax burden, foreign investors have started suffering losses in India. Therefore, they are withdrawing their money from India and investing it in the markets of America, Asia and Europe. Due to which global markets are reaching new heights and there is recession in the Indian market. Besides, the rupee is also continuously losing ground against the dollar. However, belatedly, the Finance Minister realized that the reason for the recession in India was the heavy tax burden imposed by him. Now investors will be waiting for that moment when will they decide to remove LTCG and STT on equity shares?