Zerodha CEO Nithin Kamath Questions STT Hike Impact on Revenue

• Zerodha CEO Nithin Kamath highlighted that despite government promises, Securities Transaction Tax (STT) has consistently increased, not decreased.
• Kamath noted that STT was raised by almost 60% in the F&O segment in Budget 2024, with Futures STT going from 0.0125% to 0.02% and Options from 0.0625% to 0.1%.
• He argued that the increased STT has not led to higher government revenue; actual collections are significantly below estimates (Rs 45,000 crore vs. Rs 78,000 crore estimated for FY25-26).
• Kamath suggested that lower STT might have resulted in higher government revenue, implying that increased taxes don't always yield more collections.
• He also mentioned that markets will be open on Sunday for the budget presentation, and Zerodha offers BTST trades on Sundays.

Why It Matters: Nithin Kamath questions the effectiveness of increased STT, citing lower-than-estimated government revenue.