The Hindu Business Line : Voices

"The single most retrograde move is the hiking of the Short Term Capital Gains Tax to 15 per cent. Short term transactions do a valuable function of providing liquidity in markets. This only increases the cost of liquidity in the markets. It also goes against the spirit of ensuring reasonable tax rates while trying to increase revenue collection. I would not be surprised if total collections on this count fell as a result of this."

Shankar Narayanan - MD & Head of Carlyle's Growth Capital team in India

"A fine econo-political balancing act with emphasis on continued growth and moderate inflation. Would have been happy to see some clarifications on tax treatment for REITs, mechanism to put to use of foreign exchange reserves such as constitution of sovereign fund, specific pointers towards financial sector reforms and tangible measures to strengthen and accelerate infrastructure creation."

K. Ramakrishnan, Executive Director & Head - Investment Banking, Spark Capital Advisors (I) Pvt Ltd

"Budget has delivered a blow for traders and arbitrageurs active in the market. With change in tax treatment for Securities Transaction Tax, tax burden for short-term traders will increase. Further, transaction costs are likely to increase on account of proposed service tax on services of stock exchanges. These two proposals are likely to increase transaction cost for arbitrageurs by nearly 75 per cent. Increase in short-term capital gains is like rubbing the salt on the wound. These measures will definitely dampen sprits of speculators and traders in the market. However, for long term investor there is nothing bad as far as budget announcement is concerned.

Mr Himanshu Varia, Institutional Sales - Asit C Mehta

"The focus of the Government on developing the Debt markets in India is clearly demonstrated. Removal of TDS on bonds listed on the exchanges is a very positive move and this along with the proposal to standardise stamp duties across the country will over a period of time result in the deepening of the debt markets which is possibly the biggest area of weakness in our financial system."

Gagan Banga, CEO, Indiabulls Financial Services Ltd

"Hike in Short Term Capital Gain (STCG) tax may be a slight dampener and avoidable, but will be long term neutral. Also extension of tax holiday for IT industry would not have been a bad idea. Double taxation of dividend should have been abolished to boost dividend distribution."

Vallabh Bhansali, Chairman, Enam Securities.

"The markets did not expect much, but the fact that corporate taxes and STT were not raised and long term capital gains tax was not tinkered with is a positive for investors. We don't expect any more reforms till the formation of the next government and in a high inflation; slower growth economy in a global recessionary environment, the best investment strategy would be a bottom up, value driven, and domestic consumption focused sector selection."

Ajay Bagga, CEO, Lotus India AMC Pvt. Ltd.

"Loan waiver may be a big positive for the PSU banks as possibly farmer loan NPAs get replaced by government debt which has highest security. But it will affect government finances adversely. Stock markets, a bit disappointed on increase in short term capital gain tax and non removal of surcharge on corporate tax, will soon see that fundamentals of the economy remain robust."

Mr Nirmal Jain, Chairman and Managing Director, India Infoline Ltd