Union Finance Minister Nirmala Sitharaman on Monday said the government is ready to listen to the concerns raised by stock market investors regarding the taxation structure of long-term capital gains (LTCG) and short-term capital gains (STCG).Speaking to reporters on the sidelines of the TEXPROCIL Export Awards event, Sitharaman said the Center was open to suggestions from stakeholders on the issue.“On this specific issue, and on any issue, we are always ready and willing to listen to people. We will definitely take their input,” he said, according to news agency ANI.His comments come amid growing discussion among market participants on the impact of capital gains taxation on investor sentiment and participation in equity markets.LTCG tax is levied on profits earned from investments made over a long period, while STCG tax is applicable on profits earned on assets sold within a short holding period.
FM recently defended Increase in fuel prices
Addressing questions on the economy and fuel prices, Sitharaman defended the recent increase in petrol and diesel prices, saying the revisions were being made by oil marketing companies in response to rising global crude prices.Petrol and diesel prices have increased by about Rs 7.5 per liter in four installments since mid-May.“Now the increase is coming from oil marketing companies (OMCs) because they are the ones buying (raw material crude oil) and selling (finished product – fuel),” Sitharaman said.He said the government had earlier faced significant pressure by reducing excise duty on fuel.“If we had not made the cuts at that time, there would have been an increase of Rs 10, which we absorbed, which is a blow of about Rs 1 lakh crore on the functional budget,” the minister said.Earlier in the day, Sitharaman had stressed that “India cannot afford to spread fear” amid the ongoing crisis in West Asia and concerns over rising energy prices.
Government keeping an eye on oil prices, forex pressure
The Finance Minister said the government will continue to closely monitor global crude oil prices and their impact on India’s economy.He said, “This increase in prices is not trivial, all this will have to be paid through foreign exchange only. So, these are going to be challenges.”However, he expressed confidence that India will be able to handle the situation despite external pressures.Sitharaman also highlighted concerns about rising fertilizer prices, fuel costs and forex pressure, and referred to them as the “three Fs” – fuel, fertilizer and forex.
RBI dividend, trade and textile sector discussed
Responding to a question on dividend payment by the Reserve Bank of India to the government, Sitharaman said she had confidence in the RBI’s calculations and process.“A committee had looked into this and on the basis of that the RBI makes its annual calculations and gives dividend to the government,” he said.The minister also talked about the challenges faced by exporters amid geopolitical tensions and changing global trade patterns.“Global retailers from H&M to Zara to Marks & Spencer are incorporating sustainability requirements into their sourcing criteria,” he said.He said Indian exporters will need to invest in technology, automation and sustainability to remain competitive globally.
