SBI economists call for scrapping LTCG tax on equities
Executive Brief • Key Highlights
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- ✓SBI economists on Monday called for scrapping the long-term capital gains tax on equities to stop foreign investors from leaving.
- ✓Foreign portfolio investors withdrew over Rs 3 lakh crore this year.
- ✓"The government must seriously look into anchoring hot money flows," SBI Research said, hoping to keep investors here longer.
Story at a Glance
- Category
- MARKET
- Reported By
- The Economic Times
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
Synopsis
SBI economists are advocating for the elimination of long-term capital gains tax to stimulate sustained investment in Indian equity markets. This proposal arises amid substantial foreign portfolio investor withdrawals exceeding Rs 3 lakh crore this year, prompting concerns. Furthermore, the lack of AI-focused stocks is contributing to these market exits.
Amid heavy outflows, economists at the country's largest lender, SBI, on Monday called for abolishing the long-term capital gains (LTCG) tax on equities which can help ensure such investors stay invested longer.
"The government must seriously look into anchoring hot money flows into equity segment by extending the holding period to say 2-3 years and abolishing the long-term capital gains tax for equity," SBI Research said in its Ecowrap report on Monday.
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The Economic Times
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