Govt eyes higher Securities Transaction Tax for next fiscal

Missing the tax collection target from securities, the government is looking to raise close to Rs 6,000 crore through Securities Transaction Tax (STT) in the next fiscal, says the Interim Budget presented today.

The government has also lowered its STT target to Rs 5,497 crore from Rs 6,720 crore for the current fiscal.

According to the Interim Budget unveiled by Finance Minister P Chidambaram today, the government has fixed its collection from STT to Rs 5,992 crore in 2014-15. This is 9 per cent more than the revised target of Rs 5,497 crore for the current financial year.

The government had garnered Rs 4,996.86 crore from STT in the 2012-13 fiscal.

Introduced in 2004, STT is levied on the sale and purchase of equities in the capital markets. Going by estimates, the tax accounts for a substantial part of the overall transaction costs in the stock market.

A majority of the market participants have been demanding removal or lowering of this tax.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Back from the US of A, Modi will now have to walk the talk

    It would be no overstatement to suggest that prime minister Narendra Modi’s five-day trip to the US was an exercise in PR diplomacy.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Simon J Evenett

Where the mind leads, actions follow

Whether in business, government, non-profits, or elsewhere, what assumptions underpin ...

Zehra Naqvi

Fading empathy in the modern world

The episode of a man being mauled to death by ...

Gautam Gupta

French fashion icon Gaultier’s pret goodbye

With Gaultier gone, the world of international prêt will never ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture