Nirmala Sitharaman brushes aside question about high taxes on brokers

New Delhi: Finance Minister Nirmala Sitharaman shied away from addressing the concerns raised by a Mumbai stock exchange broker over multiple layers of taxation that the government imposed on stock exchange brokers, The News Minute reported.

A broker raised the issue of heavy taxes to Finance Minister Nirmala Sitharaman at the Viksit Bharat 2047 - Vision for Indian Financial Markets in Mumbai event held on May 14.

The broker complained about various taxes imposed by the Indian government on stock market brokers and real estate transactions.

He accused the government of being "sleeping partner," collecting taxes at every stage eventually earning more than the brokers themselves.

Expanding further, the broker pointed out taxes levied on transactions such as Goods and Services Tax (GST), Integrated Goods and Services Tax (IGST), Stamp Duty, Securities Transaction Tax (STT), and Long-Term Capital Gains (LTCG) Tax.

He claimed that these layers of taxation impacted the earnings of brokers and investors.

“I am investing everything, I am taking a whole lot of risk and the Government of India is taking away the entire profit of mine. How can a broker function with hoards of taxes where the Government of India is my sleeping partner and I am a working partner with no income,” he reportedly said.

The man also said that it has become difficult to buy house after the government removed the ‘cash component’, adding that transactions have to be done through a cheque.

He pointed out that another 11% of tax is collected in the form of GST.

Nirmala Sitharaman responded to the man: “I don't have a response to this. A sleeping partner cannot answer sitting here.”

Many on social media are not happy with the minister’s response to what they said the brokers’ valid question.