Industry seeks LTCG, STT cuts in Budget 2027; MSME relief also on wish list

New Delhi Several industry bodies have urged the Ministry of Finance to rationalise long-term capital gains (LTCG) tax on equities and reduce securities transaction tax (STT) in the upcoming Union Budget 2027. Officials in the Finance Ministry, including Finance Minister Nirmala Sitharaman and Revenue Secretary Arvind Shrivastava, have been holding pre-Budget consultative meetings with the main industry bodies such as the Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI), and the PHD Chamber of Commerce and Industry (PHDCCI).

One of the most-cited requests from the industry was to rationalise LTCG tax on equities, particularly in view of the tax concessions extended to certain debt instruments. However, several other tax proposals related to the capital market also feature in the recommendations.