Budget 2026: STT Hike May Hit Margins, Not Speculation, Says Ex-CBDT Member
Budget
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CNBC TV18•01-02-2026, 18:40
Budget 2026: STT Hike May Hit Margins, Not Speculation, Says Ex-CBDT Member
- •Former CBDT Member Akhilesh Ranjan called the Budget 2026 STT hike on derivatives a "shocker," questioning its rationale and effectiveness.
- •Ranjan believes the STT increase might impact large players' margins in futures and options rather than curbing speculation.
- •Market participants fear higher transaction costs could reduce liquidity and trading volumes in India's derivatives market.
- •The Budget also includes welcome measures like safe harbor expansion, transfer pricing reforms, and APA mechanism strengthening to reduce tax litigation.
- •Decriminalization of tax defaults is seen as a positive step to build trust between taxpayers and the administration.
Why It Matters: Budget 2026's STT hike is criticized for potentially harming market margins, while other reforms aim to boost tax certainty.
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