Sitharaman Open to Views on Capital Gains Tax

Finance Minister Nirmala Sitharaman said the government was willing to hear views on long-term capital gains tax, securities transaction tax and the treatment of different asset classes, but she did not signal that any changes would be proposed in the next Budget. Speaking at the Bloomberg New Economy Forum in New Delhi on October 13, Sitharaman described debate over market taxation as healthy and said both domestic and foreign investors had raised the issues. She said Budget preparations had begun and that she would be cautious about commenting on what the government might consider. Her remarks came amid investor questions about the tax treatment of equity investments and calls to review the combined effect of capital gains tax and securities transaction tax. However, the minister made no commitment to remove or reduce the long-term capital gains tax, and no government policy change was announced. The Sensex rose 1,109.10 points, or about 1.5%, on October 13, while the Nifty gained 358.60 points, or about 1.6%. Reports linked the gains to Sitharaman’s comments, which were made during market hours. The market movement does not establish that her remarks alone caused the rise.