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Investor Calls for End to Securities Tax
29 May
Summary
- Veteran investor Vijay Kedia urges abolishment of STT.
- Kedia argues STT is an unnecessary additional tax layer.
- He states STT is paid regardless of profit or loss.
Veteran investor Vijay Kedia has advocated for the abolition of the Securities Transaction Tax (STT) in India. He argues that the tax, introduced in 2004, has become an additional layer of taxation beyond existing market levies.
Kedia highlighted that investors already pay various charges, including brokerage, exchange fees, GST, SEBI fees, and stamp duty. He emphasized that STT is levied irrespective of whether an investor makes a profit or a loss, simply for participating in the market.
According to Kedia, India's equity markets have matured significantly since STT's introduction. He believes that high transaction costs and multiple taxes discourage retail investor participation, impacting capital market efficiency and economic growth.
He suggested that abolishing STT would simplify taxation, boost market efficiency, and encourage more people to invest in India's growth story. These comments form part of Kedia's broader suggestions to strengthen India's capital markets.
