The government is expecting to increase its target regarding security transaction tax (STT) collections next fiscal year.
“For FY 23, the collection target will be raised by 70-75%. This is still low, considering many big-ticket Initial public offers, including LIC, lined up in the coming months,” said one of the officials.
Accordingly, the Budget is likely to peg STT collections for fiscal 2023 at more than Rs 21,000 crore, compared with the Rs 12,500 crore it had targeted for the ongoing FY22.
Further, government data suggest that the collections have seen healthy growth in the last three years, on account of increasing retail participation in the stock markets. The collection of STT had exceeded the budget estimate for this fiscal year in September itself, on the back of the buoyant capital markets.
However, the actual STT collections for this year, in fact, are expected to be double of the budget estimate, officials in the finance ministry told ET. These had already reached Rs 19,860 crore as on 10th January.