Photo : ET Now DigitalVijay Kedia writes to FM Nirmala Sitharaman, suggests capital market reforms, LTCG changes - FULL text of ace investor's X postAce investor Vijay Kedia has written to Finance Minister Nirmala Sitharaman with a set of suggestions aimed at strengthening India’s capital markets, including a proposal to abolish long-term capital gains (LTCG) tax on listed equities.
In his letter, Kedia argued that long-term investors should be viewed as providers of patient risk capital rather than speculators.
How do experts view the increase in capital gains tax?
Read Full ArticleFull text of the letter posted on X"Suggestion 1 of 3 for strengthening India's capital markets:Long-term capital gains tax on listed equities should be abolished.
Abolishing long-term capital gains tax on listed equities would be a powerful step in that direction.
Photo : ET Now Digital
Vijay Kedia writes to FM Nirmala Sitharaman, suggests capital market reforms, LTCG changes - FULL text of ace investor's X post
Ace investor Vijay Kedia has written to Finance Minister Nirmala Sitharaman with a set of suggestions aimed at strengthening India’s capital markets, including a proposal to abolish long-term capital gains (LTCG) tax on listed equities.
In his letter, Kedia argued that long-term investors should be viewed as providers of patient risk capital rather than speculators. According to him, investors who stay invested in businesses for years help companies expand, generate employment, innovate and contribute to India’s economic growth. Breaking It Down What are the proposed changes to LTCG in Budget 2024?
How do experts view the increase in capital gains tax?
What strategies are investors advised to adopt post-budget? Created with AI. Errors are possible
Kedia said India needs significantly higher levels of long-term capital to build world-class companies, infrastructure and global champions. He argued that tax policies should encourage households to shift savings from passive assets such as gold into productive businesses that create jobs, generate revenues and build national wealth. Read Full Article
Full text of the letter posted on X
"Suggestion 1 of 3 for strengthening India's capital markets:
Long-term capital gains tax on listed equities should be abolished.
A long-term shareholder is not a speculator but a provider of patient risk capital. By investing in and holding businesses, investors help companies expand, create jobs, innovate and contribute to India's economic growth.
India requires enormous amounts of long-term capital to build world class enterprises, infrastructure and global champions. Tax policy should encourage households to move savings from passive assets, including imported stores of value such as gold, into productive businesses that create jobs, generate tax revenues and build national wealth.
The appreciation in a company's value is not created in isolation. During its growth journey, the government already collects corporate tax, GST, income tax from employees, customs duties, stamp duties and numerous other levies. Long-term capital gains are often the final outcome of economic activity that has already generated substantial tax revenues.
Most importantly, tax policy should clearly distinguish between investment and speculation. A long term shareholder is a partner in wealth creation, not merely a participant in market transactions. Tax policy should reward long-term ownership of productive businesses and distinguish it from short-term speculation.
India needs more patient capital, more entrepreneurship and more long term investing. Abolishing long-term capital gains tax on listed equities would be a powerful step in that direction.
Respectfully submitted."
