Abolish LTCG, rationalise STCG, STT rates on equities: PHDCCI to Finance Ministry
Economic Times 1 hr ago·29 Oct 2026, 9:47 am
The PHDCCI has urged the Finance Ministry to overhaul the tax structure for equities, specifically recommending the abolition of the Long Term Capital Gains (LTCG) tax and a rationalisation of Short Term Capital Gains (STCG) and Securities Transaction Tax (STT) rates. The chamber argues that the current framework discourages genuine long-term investment and creates a double-taxation burden on investors.
This move is significant as it addresses concerns regarding the competitiveness of the Indian stock market. The suggestion to increase the holding period for LTCG aims to shift the market focus towards long-term value creation rather than short-term trading. Such changes could potentially improve investor sentiment and attract fresh capital to the domestic market.
Investors should watch the government's response to these recommendations. If accepted, these reforms could lead to a more favourable environment for retail and foreign investors, potentially boosting market liquidity. However, any delay or rejection of these proposals may continue to weigh on investor confidence in the near term.
Key takeaways
- Category: Corporate Action.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development and could move the stock. The tone is positive — historically associated with upward pressure, though not predictive. Use the price and stock snapshot to gauge how the market is responding.
