The Association of National Exchange of Members of India (NMI), on behalf of its 900 stockbrokers, has written to the GST Council to rationalize the Goods and Services Tax (GST) rates for capital markets, and has urged the government to consider the same. has urged. Upcoming Union Budget for the financial year FY22.
It said in a statement, “Anmi’s presentation leads to recommendations for increased GDP growth, equity investment, which will need to be incentivized and encouraged.”
Anmi said the Indian capital market is burdened with several transaction costs which include various direct and indirect taxes, such as securities transaction tax (STT), GST and stamp duty. Capital markets was one of the first industries to be included in the purview of the service tax regime and has seen a marginal increase in service tax and GST rates from 5% to 18%.
According to Anmi, a rational attempt to reduce the GST rates to 12% may stimulate sentiments of various market participants with a slight reduction in tax collections.
“A deep and strong market can attract investments from FPIs, FIIs and NRIs by performing a competitive market in terms of transaction costs. AMI has recommended that the rate should be rationalized for the benefit of the broking industry at large and the revenue implication would mean increased volumes and participation in large numbers. of investors,” it said.
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