| Develop STT as an important tool to contain volatility in the market, undue speculation, and to augment revenue without any administrative hassles. There can be different rates of STT for purchases and sales and for amounts exceeding certain cut off limits fixed for sales and purchases. Retailers doing transactions for less than a cut off limit can be given even an exemption to encourage retail participation in the market. Over a period, the approach should be to remove the capital gains tax by suitably modifying the STT for revenue loss if any. STT can also be different for Individuals, Institutions, MFs and FIIs. Dr T V Gopalakrishnan (This comment appeared in Business Line dated 23/10/15) |
Friday, October 23, 2015
Make STT an Important administrative tool to Contain Volatility in the market
Subscribe to:
Post Comments (Atom)
2 comments:
A good suggestion. Did the FM think of this view at the time of introduction of STT many years back?
The suggestion originally given by me in the year 2000 through various commercial dailies met with a serious resistance from market lobby and then FM Mr Yeswant Sinha did not bother to introduce. This was introduced by the FM Mr Chidambaram in the year 2004 and since then it has been in vogue despite opposition from various corners every now and then.Unfortunately our bureaucrats do not find reason and rationale to augment the revenues of the government without having inflationary impact and administrative hassles and without giving scope for corruption. The policies should enhance the revenue , reduce the inequality of income distribution, inflation and should be very fair in content and approach. As a citizen of less influence and contacts, one can only offer suggestion and no other way to make it acceptable.
I have given a very detailed practical suggestion to prevent formation of Non performing Loans in banks which is equally workable and highly practical but not finding an acceptance.
Thank you very much for your favouarble response.
Post a Comment