NEW DELHI: India’s Finance Minister Nirmala Sitharaman says she will consider tax changes on stocks as a prolonged equity-market slump intensifies pressure on policymakers to revive investor confidence.
The debate over taxes on equity gains has grown as the market sell-off deepened.
Sitharaman said she recognised the “sensitivity” and “anxiety” among retail investors, while noting that similar tax rates were in place when India attracted strong capital inflows in 2023 and 2024.
“I quite appreciate” the concerns being raised and “I’ll consider all this”, Sitharaman said on Monday, without specifying whether the government was considering changes to capital gains or transaction taxes.
Indian stocks are among the worst performers in Asia this year, trailing emerging-market peers by the widest margin in more than three decades.
Elevated oil prices and rising global yields have added to worries about expensive valuations and weak earnings growth.
The comments come as preparations begin for India’s next federal budget, typically presented in early February.
Sitharaman is set to deliver her 10th consecutive budget, extending her record for the most in a row by a finance minister.
Long-term gains on listed equities held for more than a year are taxed at 12.5%, while short-term gains are taxed at 20%. — Bloomberg
