The surprise 25 per cent hike in securities transaction tax (STT) on sales of futures and options (F&O) contracts has met with a disapproval from the stockbroking community, who fear a hit on volumes, impact costs and profitability.
The Ministry of Finance, correcting a typographical error in the amendments to The Finance Bill,2023 announced an increase in STT from the current rate of ₹5,000 to ₹6,250 per 1 crore for sale of options.
Further, for sale of futures in the securities, STT rate has been increased from 0.01 per cent to 0.0125 per cent, translating into ₹1,250 per ₹1 crore.
These changes will be applicable from April 1, 2023.
Voicing out concerns and requesting for a review of the decisions, stock brokers said that the higher STT will increase the cost of transacting in the domestic markets, which is already high compared to global standards.
This story is from the March 25, 2023 edition of Business Standard.
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This story is from the March 25, 2023 edition of Business Standard.
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