Nirmala Sitharaman asked by broker why ‘government is taking his entire profit’. Watch her reply
The broker said that he has been investing money and bearing the risks as well but the government is almost like his “sleeping partner”.
Union finance minister Nirmala Sitharaman responded to a question on taxes levied on stock market brokers along with real estate transactions. At an event, the minister was asked by a stock broker on the amount of taxes levied by the government on stock market transactions as well as on buying a house. The broker said that he has been investing money and bearing the risks as well but the government is almost like his “sleeping partner” because it continues to earn through taxes like GST, IGST, Stamp duty, Securities Transaction Tax (STT) and Long Term Capital Gains (LTCG) Tax.
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As a chunk of profit goes to the government, the broker questioned the process. The question made Nirmala Sitharaman and the audience laugh while the broker continued to ask the minister about the amount of taxes to be paid on buying a house like Stamp Duties and GST.
He questioned Nirmala Sitharaman on how the government is helping those with limited resources to buy a house and how a broker can function with taxes being put by the government.
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Responding to the question, Nirmala Sitharaman said, “I don't have a response to this.”
She quipped, “A sleeping partner cannot answer sitting here."
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During the event, the minister also appealed to the BSE to work closely with capital markets regulator Securities & Exchange Board of India (SEBI) to help increase investor confidence.