In response to Finance Minister Nirmala Sitharaman’s Budget announcement, Zerodha co-founder Nithin Kamath commented on the increase in Securities Transaction Tax (STT) rates. The STT on options rose from 0.062% to 0.1%, and on futures from 0.0125% to 0.02%, effective October 1st. Kamath pointed out that Zerodha collected approximately ₹1,500 crore in STT last year, and with the new rates, this could increase to ₹2,500 crore if trading volumes remain stable. He noted the increases in both long-term and short-term capital gains taxes, predicting that these changes could reduce market activity.
Kamath’s comments reflect a broader concern about the impact of these tax hikes on retail investors and frequent traders. The market’s initial reaction to the budget was mixed, with some experts noting potential long-term benefits in promoting stable investments, despite short-term disruptions.
