Union Finance Minister Nirmala Sitharaman had a tricky question to field at a BSE event on Wednesday where a broker raised concerns over high taxes imposed on stock market brokers and real estate transactions.
Labelling the government as a 'sleeping partner', the broker said the Centre was making more money than his community from various taxes such as CGST, STT, long-term capital gains tax. "I am investing everything, I am taking a whole lot of risk and government of India is taking away entire profit of mine. How can a broker function with hoards of taxes where government of India is my sleeping partner and I am working partner with no income".
The broker further pointed to the significant tax burden while buying a house.
"The government has removed the cash component from buying a house. In present times, buying a house in a place like Mumbai is a nightmare because I am paying tax and I have white money...now we have to pay everything in cheque, so my bank balance is everything that I have left after paying taxes to government of India...Now again when I am going to buy a house I have to pay stamp duty, GST, which amount to 11 per cent," he said, asking how the finance minister will assist an individual with limited resources to buy a house.
Sitharaman, in response, remarked, "A sleeping partner cannot answer sitting here."
Batting for middle-class investors, Sitharaman flagged an ‘unchecked explosion’ in retail futures & option (F&O) trading, saying it can pose challenges to the markets and household finances. “Any unchecked explosion in retail trading of futures and options (F&O) can create future challenges, not just for the markets, but for the investor sentiments and also for household finances,” Sitharaman said. “Household finances have made a generational shift. We want to safeguard that and ensure that it is not going to be shattered,” she said.