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E-mail ID will not be published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

  • Neither secular nor socialist, India at 66 is back where it began

    The republic has entered its 66th year but the nation is more than just another year older.

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

Arun Kumar Jain

Building great cities (and nations)

Fifteen to twenty years’ span is the time when humans ...

Kuruvilla Pandikattu SJ

Defining success differently

Researchers spent four decades studying a group of mathematically talented ...

Shona Adhikari

All roads lead to Delhi, as it gears up for art fair

With the seventh edition of India Art Fair (IAF) coming ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture