Budget 2019 expectations: Corporates demand rationalisation of taxes in banking sector from Modi government
The Long-Term Capital Gain (LTCG), Security Transaction Tax (STT) Dividend Distribution Tax (DDT) result in triple taxation of corporate earnings that are distributed. This has led companies to favour debt capital over equity capital.
The government of India needs to work with RBI to reduce the effective real rate of interest which today is the highest in the world. Photo source: Reuters