LTCG tax removal on the table? FM Sitharaman says Budget consultations will hear investors’ views

Finance Minister Nirmala Sitharaman has indicated that the government will hear investor views on removing the long-term capital gains (LTCG) tax during Budget consultations, bringing equity taxation back into focus as foreign portfolio investors continue to withdraw money from Indian markets.Speaking at the Bloomberg New Economy Forum in New Delhi on Tuesday, Sitharaman said investors, both Indian and foreign, had raised questions about LTCG tax, the securities transaction tax (STT) and whether different asset classes should receive similar tax treatment.Her remarks come amid calls for changes to India's equity taxation regime, including a proposal from SBI Research to abolish LTCG tax on equities and extend the holding period to two or three years to encourage more durable capital inflows.However, the finance minister's comments do not amount to an announcement that the government intends to scrap the tax.