A video of Finance Minister Nirmala Sitharaman's reaction to a complaint from a Mumbai broker about excessive taxes that elicited laughter at a recent event is going viral on social media. In the video, the man can be seen suggesting that the government acts as a "sleeping partner" for brokers and investors, subjecting them to taxes at every juncture.
During the "Vision for Indian Finance Markets" event at BSE in Mumbai, the broker highlighted that while investors assumed risks with their investments, the government benefitted by imposing a significant tax burden. His analogy brought a smile from the Finance Minister.
“When we are putting a trade for a retail investor, you are attracting a number of taxes- GST, IGST, stamp duty, STT, and long-term capital gains tax… so today the government of India is earning more than the broker,” the broker said.
He emphasised that investors and brokers take significant risks, encompassing financial investments and operational expenses. "I am assuming considerable risk while the government of India is claiming all the profits... you are akin to my silent partner, and I am the active partner," he said.
Sitharaman reacted to the broker's characterisation, saying, "A sleeping partner cannot answer sitting here," prompting laughter from the audience.
The broker also highlighted the challenges of buying a home in Mumbai and how taxes make it worse. “Today, we can’t make payments in cash… so if I am buying a house, I will have to pay by cheque. My bank balance is purely after paying all the taxes to the government of India. But when I am buying a house, I have to pay 11 per cent GST in Mumbai. So how will you assist a small person with limited resources and brokers who have to pay a hoard of taxes to the government?” the broker asked the minister.
Also Read: 'Household Finances Have Made Generational Shift, Want To Safeguard Them', Says Sitharaman