Overview
- Vijay Kedia posted on X on Wednesday, May 27, calling on Finance Minister Nirmala Sitharaman to abolish long‑term capital gains (LTCG) tax on listed equities and to reward long‑term shareholders as providers of “patient risk capital.”
- Kedia argued that taxing long‑term gains amounts to extra levies because companies already generate corporate tax, GST, employee income tax, customs duties and stamp duties during growth.
- The Finance Ministry has said it will listen to investor concerns but has told Parliament there is no current proposal to scrap LTCG, so any change is not imminent.
- Government figures showing nearly ₹98,681 crore in LTCG collections from listed equities in FY23 make abolition fiscally sensitive and could force trade‑offs between tax revenue and market incentives.
- Kedia’s plea broadened an investor tax debate by also proposing an end to perceived double taxation on dividends and the removal of the Securities Transaction Tax, while analysts warn that any move could alter foreign institutional investor flows and retail behaviour.