Union Finance Minister Nirmala Sitharaman found herself at a loss for words when confronted with concerns regarding the substantial taxes imposed on Indian stock market brokers and real estate transactions, an incident that later garnered widespread attention on social media platforms.
Addressing the Finance Minister during an event at the Bombay Stock Exchange (BSE), a broker expressed apprehensions regarding the multitude of taxes and charges associated with transactions in the stock market, lamenting, “Today, the Government of India is earning more than the broker. I am investing everything, taking a whole lot of risk, and the government is taking away my profit. You are my sleeping partner. So, what do you have to say about this?” Additionally, the broker raised similar concerns regarding taxes applicable to property purchases.
In response, Finance Minister Nirmala Sitharaman remarked, “A sleeping partner cannot answer sitting here.”
The Indian stock market imposes various statutory charges, including Securities Transaction Tax (STT), Exchange Transaction Charge, Goods and Services Tax (GST), SEBI charges, Stamp Duty, and Depository Participant (DP) charges. Despite the raised concerns, the Finance Minister opted not to address the specific queries concerning taxes in the Indian stock market during the event.
