Equirus pitches for abolishing advance tax, tapering small-savings schemes to accelerate growth
BusinessLine 2 hrs ago·14 Aug 2026, 3:53 am
Equirus has proposed a significant policy shift aimed at boosting economic growth. The firm suggests abolishing the system of advance tax, which requires businesses to pay taxes on income before it is fully earned. Additionally, they recommend tapering the interest rates on small-savings schemes like PPF and NSC. The goal is to free up liquidity in the system and encourage investment.
For investors, this proposal highlights the debate around fiscal policy. If implemented, higher interest rates on small savings could push investors toward riskier assets like equities. Abolishing advance tax would improve the cash flow of companies, potentially supporting their expansion plans. However, these are long-term structural changes that require government approval.
Investors should watch for any official response from the finance ministry. While the proposal is a step toward deregulation, its actual impact depends on the government's willingness to implement such reforms. Until then, the focus remains on how these ideas influence market sentiment and investor behavior.
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
Why it matters
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