Budget 2026: Investors Demand Lower LTCG Tax, STT to Boost Market Returns

• Equity investors are advocating for reduced Long-Term Capital Gains (LTCG) tax and Securities Transaction Tax (STT) in the upcoming Union Budget 2026.
• The previous Budget saw STT on options and futures double, and LTCG tax increased from 10% to 12.5%, making market-linked products less attractive.
• Experts argue STT has 'outlived its original purpose' due to modern reporting tools, and its validity is under Supreme Court scrutiny for potential double taxation.
• High transaction costs, including STT and capital gains tax, significantly erode post-tax returns, especially for retail investors using SIPs.
• Investors seek a more stable and lower-friction tax framework to encourage long-term investment and revive market sentiment amidst global volatility.

Why It Matters: Investors urge Budget 2026 to cut LTCG tax and STT for better returns and market attractiveness.