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Capital Markets Urge Tax Cuts in Pre-Budget Meet
18 Nov
Summary
- Capital markets sector requested lower transaction tax.
- Financial sector aims for deeper market inclusion.
- Capital markets facilitated Rs 14.6 lakh crore resource mobilization.
Ahead of the upcoming Budget 2026-27, capital markets representatives have urged Finance Minister Nirmala Sitharaman to implement reductions in transaction tax. The sector also proposed measures aimed at enhancing financial sector depth and promoting broader market inclusion. These discussions took place during the fourth pre-Budget meeting, where industry leaders advocated for a lower Securities Transaction Tax (STT) on cash market trades compared to derivatives.
Capital markets demonstrated robust performance, facilitating resource mobilization of ₹14.6 lakh crore in FY25, a 33% increase from the previous year. This substantial flow was supported by a diverse range of financial instruments, including equity, debt, REITs, and InvITs, underscoring their critical role in corporate and infrastructure financing.
The Ministry of Finance's pre-Budget consultations are ongoing, with previous meetings held with economists, agriculture sector representatives, and MSME players. The Finance Minister is set to present her ninth consecutive Budget, addressing key economic priorities like boosting demand, creating jobs, and sustaining high growth amidst global uncertainties.
