In 2004, STT was introduced alongside an exemption from equity LTCG tax. In 2018, LTCG returned at 10%, but STT stayed. The exemption vanished. The burden remained. Investors were saddled with BOTH. 🤦♂️
In 2020, dividends became taxable in shareholders’ hands. The company pays tax on its profits, then shareholders pay tax when those profits are distributed. The same earnings face another layer of taxation.
In 2024, LTCG rose from 10% to 12.5%, STCG from 15% to 20%, and F&O STT increased. In 2026, F&O STT was hiked AGAIN. A relentless escalation of the tax burden. 📈
Markets remain below their 2024 highs, yet the government’s appetite is insatiable. You commit the capital, shoulder the risk and absorb the losses. They collect even on losing trades. 💸
Calling this “encouraging investment” is an insult to investors. 😞