Comments
Most analysts do not expect the Interim Budget to be market-friendly while some feel it has lost its relevance post Goods and Services Tax implementation.
However, there are some hopes that the Budget may scrap the long-term capital gain (LTCG) tax and cut the securities transaction tax (STT).
Anand Rathi, Chairman, Anand Rathi Group, seeks removal of LTCG tax and reduction in STT. “It will help improve the sentiment and make the equity market an attractive option once again,” he said.
The industry is currently facing different STT levies in different types of transactions. “The government should reconsider how the STT is being currently levied and, if possible, reduce the tax. This will help improve the equity funding and provide relief to the capital markets,” he added.
If the expectation on LTCG and STT is met, that will help the markets to form liquidity as foreign institutions will invest more, said Debadrata Bhattacharjee, Head of Research, CapitalAim. When LTCG and STT were increased, FIIs had started putting their money in rival emerging markets, instead of paying higher tax here, he added.
Kotak Securities expects the government to continue to focus on divestment of its stakes in various companies to bolster its overall revenues. “While the government has garnered ₹33,800 crore till December 1, 2018, the REC, BHEL and NHPC transactions, along with expected SUUTI sales, should ensure meeting of the target of ₹80,000 crore for FY2019,” it said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.