Global Factors Behind Mkt Fall, Not LTCG Tax: Economist

New Delhi: The recent fall in the Indian stock market is not due to the Long-Term Capital Gains (LTCG) tax, but because of global instability, economist and BJP national spokesperson Sanju Verma said on Wednesday.

In a conversation with IANS, Verma responded to remarks made by fund manager Samir Arora, who had suggested that the stock market decline was linked to LTCG tax.

“This is not true. The Indian market is falling due to global factors,” she contended, adding that the 12.5 per cent LTCG tax will only come into effect from April 2026 and it is non-discriminatory. “The government has ensured that the LTCG tax rate remains uniform for retail investors, institutional investors, and foreign investors,” Verma stated.

The debate around the LTCG tax has gained momentum as some market watchers attributed the current downturn to high LTCG rates and urged the government to reconsider the current framework to reduce its impact.