Finance Minister Nirmala Sitharaman recently attended the 'Viksit Bharat 2047 - Vision for Indian Financial Markets' event, organized by the Bombay Stock Exchange (BSE) in Mumbai. In her keynote address, Sitharaman commended the BSE for its significant contribution to the Indian financial markets, noting their remarkable performance amidst global uncertainties.
During the event, Sitharaman engaged with the audience, including numerous stock brokers from Mumbai. A notable moment that has since gone viral involved a stock broker questioning the Finance Minister about the multitude of taxes imposed on brokers. His question, highlighting the high taxes including GST, CGST, STT, IGST, Stamp Duty, and LTCG tax, resonated well with the audience, eliciting laughter and applause.
The broker humorously remarked, "As a broker, when we put a trade for a retail investor, we attract numerous taxes. Today, the government of India is earning more than the broker. I am investing everything, taking a whole lot of risk, and the government is taking away all my profit. You are my sleeping partner, and I am the working partner with my finance, risk, staff, and everything."
In a follow-up question, he raised the struggles of buying property in Mumbai, stating, "Buying a house in Mumbai is a nightmare because I am paying tax, and I have white money. Now, we have to pay everything by cheque, so my bank balance is everything I have left after paying taxes. Again, when I buy a house, I have to pay stamp duty and GST, amounting to about 11 percent.”
In response, Sitharaman emphasized the need for both the BSE and NSE to reduce systemic risks and maintain market stability. She urged the BSE to collaborate closely with the Securities and Exchange Board of India (SEBI) to foster investor trust through strict compliance and robust regulatory standards.
The event highlighted key issues within the financial markets and provided a platform for brokers to voice their concerns directly to the Finance Minister, underscoring the importance of ongoing dialogue between market participants and regulators.
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