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Centre open to hearing concerns on equity taxation, re-evaluate tax structure: FM Nirmala Sitharaman
/ 2 min read
In the wake of flight of capital from the domestic equity, murmurs on high equity taxation has been growing among investors, portfolio managers, etc drawing a parallel between the FII exit and high taxation.
Finance Minister Nirmala Sitharaman | Credits: Narendra Bisht
Amid rising concerns from several quarters on high taxation on capital gains on equity investments in India, finance minister Nirmala Sitharaman on Monday said the government will listen to the demands of equity investors and is open to re-evaluating tax system, based on demands and inputs from the investor community.
In the wake of flight of capital from the domestic equity, murmurs on high equity taxation has been growing among investors, portfolio managers, etc drawing a parallel between the FII exit and high taxation.
Data reveals that foreign institutional investors (FIIs) have pulled out over ₹2 lakh crore from India’s secondary markets in the first four months of 2026.
FM Sitharaman said that the government is willing to listen to the concerns raised by stock market investors regarding tax system, including issues related to Long Term Capital Gains Tax (LTCG) and Short Term Capital Gains Tax (STCG).
"On this particular issue or any other issue, we are always ready to listen to the people. We will certainly take their inputs," Sitharaman said while responding to a query on demand pertaining to review of equity taxation by market participants.
She was speaking on the sidelines of an awards function organised by the Cotton Textiles Export Promotion Council (TEXPROCIL) in Mumbai.
Earlier in the day, FM Sitharaman also said West Asia crisis is not only a diplomatic and geo-political issue and is hurting businesses, MSMEs and citizens.
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FM said the government’s approach is to safeguard the business and the common citizens and maintain economic stability.
FM Sitharaman also said high international crude oil prices, unimaginable increase in the fertiliser prices, and high gold prices are creating challenges on the external front. FM also pointed out that India’s domestic economic situation remains positive and resilient even today.
“West Asia crisis is not only a diplomatic and geo political issue. For businesses and common people, it can mean higher fuel cost, delayed cargo, costlier shipping, shortage of inputs, pressure on working capital, and uncertainty in export orders. The government’s approach is to protect citizens, support MSMEs, safeguard exporters and keep supply chains moving,” Sitharaman said at the foundation day celebration of Sidbi.