The government should consider relieving traders of the Securities Transaction Tax on equity trade in the Union Budget 2022, which will be presented by the finance minister on February 1, according to reports.
The move is expected to boost the capital markets and encourage new investors to start trading.
The government had introduced Securities Transaction Tax (STT) in 2004 on transactions in different types of securities.
Puneet Maheshwari, Director, Upstox, said the government may consider relieving traders of the STT.
Nikhil Kamath, co-founder of True Beacon and Zerodha, stated that the investment industry will benefit if the Securities Transaction Tax is abolished, as both long-term capital gains (LTCG) and short-term capital gains (STCG) are in place.
(With inputs from PTI)