Raghav Chadha Calls for LTCG Tax Relief, Cites Burden on Individual Investors

Raghav Chadha Calls for LTCG Tax Relief, Cites Burden on Individual Investors

Aam Aadmi Party (AAP) leader Raghav Chadha has urged the government to remove the Long Term Capital Gains (LTCG) tax on shares in the Rajya Sabha. He believes that this would help people grow their savings and motivate them to invest in the stock market for the long term.

He shared a post on his social media platform ‘X’ (previously known as Twitter) saying that raising the Securities Transaction Tax (STT) on derivatives is a good idea because it can reduce risky and excessive speculation. But keeping both STT and Long-Term Capital Gains (LTCG) tax on shares at the same time discourages real equity investments.

Earlier, when the government introduced the STT, there was no long-term capital gains (LTCG) tax, so investors were taxed only once. He also points out that countries like Switzerland, Singapore, and the UAE don’t tax equity capital gains at all, which helps them attract more investors and boost market participation.