SBI economists call for scrapping LTCG tax on equities

SBI economists are urging the government to abolish the long-term capital gains tax on equities. This proposal aims to boost sustained investment in Indian equity markets, which have been facing challenges due to substantial foreign portfolio investor withdrawals. The economists believe that removing this tax will make Indian equities more attractive to investors, potentially reversing the trend of withdrawals.

Why it matters

SBI economists are advocating for the elimination of long-term capital gains tax, which could stimulate sustained investment in Indian equity markets. This proposal could lead to increased investor appetite and higher stock prices.

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