Capital Markets Push for Tax Cuts and Financial Sector Reforms

Representatives from capital markets called for reduced transaction taxes and measures to broaden the financial sector during a pre-Budget meeting with Finance Minister Nirmala Sitharaman. The consultation aimed at enhancing market efficiency and inclusion, amid evolving financial instruments and economic challenges.

In a bid to influence the upcoming Budget, representatives from capital markets convened on Tuesday to advocate for the reduction of transaction taxes and the implementation of measures to strengthen the financial sector.

During a pre-Budget meeting with Finance Minister Nirmala Sitharaman, discussions centered on enhancing the efficiency of capital markets alongside increasing market inclusion. Suggestions included a notable call for a decrease in Securities Transaction Tax (STT) on cash market trades, favoring them over derivatives.

The meeting, marking the fourth of its kind, was attended by significant entities such as BSE and the Multi Commodity Exchange. Data showed capital markets facilitated a substantial Rs 14.6 lakh crore in resource mobilization, reflecting the sector's pivotal role in supporting economic growth amidst evolving geopolitical challenges and policy shifts.

(With inputs from agencies.)