Business News
4 min read | Updated on January 19, 2024, 17:09 IST
SUMMARY
FM Nirmala Sitharaman will be presenting the Interim Budget on February 1. Investors hope the FM would bring about capital market reforms – many of which will not be difficult to do but will bolster the market’s mood. Capital market reforms help deepen the market, unlocking wide benefits for the economy.
Investors are expecting some capital market reforms in this budget
Budget 2024 is around the corner and experts have suggested not keeping hopes too high given that this is the last Budget under the current tenure of the government. Whilst investors may not expect big bang announcements, there are certain reforms that they do expect. And the reforms will be sweeter if they are within the realm of capital markets.
Here are key expectations that investors and the common man have from Budget 2024.
They expect continuity and stability in the tax regime and the larger economic structural reforms to be carried forward, which will help India Inc register strong growth and justify the stock valuations, which some perceive as being elevated.
At the corporate level too, lower tax rates will leave more money in their coffers which can be used for expansion, dividend payouts, and investment. In the same way, a reduction in the top tax rate will leave more money in the hands of individuals (high net worth individuals in this case).
For the last many years, market participants have been seeking the abolition of the Securities Transaction Tax (STT), or at least a cut in its rate for the cash market segment. Introduced in 2004, STT has brought in good revenues to the government. The government raked in ₹23,191 crore in FY22, while the projected collection in FY23 was ₹25,000 crore, and in FY24, it is seen at ₹27,625 crore.
Experts say the government should simplify these rules to make the tax structure simpler and easier to follow.
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