Union Finance Minister Nirmala Sitharaman on Monday indicated that the government is open to hearing concerns and suggestions from investors regarding the current taxation structure for Long-Term Capital Gains (LTCG) and Short-Term Capital Gains (STCG).
Speaking during the TEXPROCIL Export Awards event, FM said the Centre remains willing to engage with stakeholders on issues affecting taxpayers and investors.
Her remarks come at a time when discussions around capital gains taxation have gained momentum in financial markets, with several investors and market experts seeking a more balanced tax framework to support investment activity.
"On this issue, and on any issue, we are always willing to listen to people and take their feedback," the finance minister said while interacting with reporters.
Capital Gains Tax Remains a Key Concern for Investors
LTCG and STCG taxes continue to be among the most discussed topics in India's investment ecosystem. While LTCG tax applies to profits earned from assets held for a longer duration, STCG tax is levied on gains from investments sold within a shorter period.
Market participants believe taxation policies directly influence investor participation, trading behaviour and long-term wealth creation in equity markets.
FM Sitharaman's statement is being viewed as a positive signal for investors who have been demanding a review of capital gains tax rates and holding period rules.
FM Explains Reasons Behind Fuel Price Increase
The finance minister also addressed rising petrol and diesel prices, attributing the increase primarily to the surge in international crude oil prices.
According to Sitharaman, oil marketing companies (OMCs) are responsible for fuel price revisions since they procure crude oil from global markets and supply finished fuel products domestically.
Petrol and diesel prices have reportedly risen by nearly Rs 7.5 per litre in multiple revisions since mid-May.
Defending the government's position, she said the Centre had earlier reduced excise duties significantly to cushion consumers from a sharper spike in fuel prices.
"Had the government not reduced excise duties earlier, fuel prices could have increased by nearly Rs 10 more. That reduction itself resulted in a revenue impact of close to Rs 1 lakh crore," Sitharaman said.
Government Closely Watching Fuel, Fertiliser and Forex Situation
The finance minister highlighted that India is carefully monitoring the economic impact of global developments, particularly on fuel imports, fertiliser costs and foreign exchange reserves.
Describing them as the "three Fs" - Fuel, Fertiliser and Forex, FM Sitharaman noted that increasing global commodity prices could place additional pressure on India's economy.
She cautioned that higher crude oil prices would increase the country's foreign exchange outflow since energy imports are paid for in foreign currency. Despite these challenges, the minister expressed confidence in India's ability to manage the situation effectively and maintain economic stability.
RBI Dividend and Export Sector Challenges
Responding to questions regarding the Reserve Bank of India's dividend payout, Sitharaman said the RBI follows a structured and committee-backed process while determining surplus transfers to the government.
She also spoke about the changing dynamics in global trade and the growing importance of sustainability standards for exporters.
Referring to international brands such as H&M, Zara and Marks & Spencer, the finance minister said global buyers are increasingly prioritising sustainable sourcing practices.
Sitharaman added that Indian exporters would need to strengthen investments in automation, technology and sustainability initiatives to remain competitive in international markets.
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