Missing the tax collection target from securities, the government is looking to raise nearly Rs 6,000 crore through Securities Transaction Tax (STT) in the next fiscal year (FY15), according to the interim budget 2014.
The government has also lowered its STT target to Rs 5,497 crore from Rs 6,720 crore for the ongoing fiscal year (FY14).
According to the interim budget unveiled by Finance Minister P Chidambaram on Monday, the government has fixed its collection from STT to Rs 5,992 crore in 2014-15. (Read full speech by
This is 9 per cent more than the revised target of Rs 5,497 crore for the current financial year.
The government had garnered Rs 4,996.86 crore from STT in fiscal year 2012-13 (FY13).
Introduced in 2004, STT is levied on the sale and purchase of equities in the capital markets.
Going by estimates, the tax accounts for a substantial part of overall transaction costs in the stock market. A majority of the market participants have been demanding removal or lowering of this tax.
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