Hi @ShubhS9
Why is STT so high(especially for equity) in India , what might be the reasoning by regulators?
To earn money. Why else
They can keep it even higher and volumes won’t reduce
I read somewhere that there was no STT before.
They introduced STT telling there is no tax on long term gains so they need income.
Then they also introduced tax on long term gains so now both are there.
Death and taxes are the only certain things in life.
Which other countries is it lower in? For the US, I could only find their equivalent of SEBI charges
STT was introduced to ensure the concessional capital gains tax rates for STCG & LTCG in stock market transactions is subvented. In a way, people with high trading activity are taking up the tax cost that investors are saving in lower capital gains taxes.
1 Like