# FICCI seeks LTCG tax removal, higher STT as alternative 2026-11-04T16:26:51+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 3 independent outlets Industry body FICCI has asked Finance Minister Nirmala Sitharaman to restore the long-term capital gains (LTCG) tax exemption on listed shares in the Union Budget 2027-28, and has proposed raising the securities transaction tax (STT) on delivery-based trades to offset revenue loss. FICCI noted that foreign portfolio investors (FPIs) have withdrawn about Rs 3.08 lakh crore during the year. The chamber said the double levy of LTCG tax and STT, reintroduced in 2018, erodes equity returns, and recommended maintaining any new regime for at least 10 years for investor certainty. Separately, SBI Research has suggested that abolishing LTCG tax could cost Rs 40,000 to 50,000 crore in FY28, or about 0.1 to 0.2% of GDP, and proposed raising the LTCG exemption threshold to Rs 2 lakh and linking it to inflation. Finance Minister Sitharaman acknowledged FPI and equity market concerns on 2 November, saying the government recognises changed global circumstances and will consider feedback. She noted that the tax structure is similar to 2023-24 when inflows were strong, but circumstances have since changed. FICCI also sought lighter TDS rules, faster tax appeals, and clearer taxation of foreign digital firms. Update, 4 November 2026: Business Today adds that SBI Research has estimated the revenue loss from scrapping LTCG tax at Rs 40,000 to 50,000 crore in FY28, or about 0.1 to 0.2% of GDP, and proposed raising the LTCG exemption threshold to Rs 2 lakh and a reduced 5% rate for investments held two to three years. The Finance Minister's 2 November remarks are confirmed across all sources. ## Indian Opinion Analysis All three outlets report the same FICCI recommendations and the Finance Minister's acknowledgment of investor concerns in a uniform, neutral-report style. Economic Times and Business Today lead with FICCI's specific proposals, including the STT-for-LTCG swap and the Rs 3.08 lakh crore FPI outflow figure, while Livemint foregrounds the Finance Minister's speech. Business Today adds SBI Research's revenue estimates, a separate data point not present in the other two. The coverage carries no discernible slant: no outlet frames the tax proposals as either necessary or fiscally reckless. The only open question is how the government will weigh FICCI's revenue-offsetting STT hike against investor certainty, a decision due in the Budget 2027-28. ## Coverage Coverage: 3 sources, 3 neutral - economictimes.indiatimes.com (neutral report) Straight listing of FICCI's recommendations and FM's remarks - livemint.com (neutral report) Leads with FM's acknowledgment, adds market context - businesstoday.in (neutral report) FICCI proposals plus SBI Research's fiscal estimates This brief was synthesised by AI from the 3 sources linked above, so one read covers every framing they carry. Update, 5 November 2026: further reports on this story from theshillongtimes.com, timesofindia.indiatimes.com, cnbc.com. Last updated 2026-11-05T00:46:56+00:00. Tags: FICCI, FPI, LTCG, Nirmala Sitharaman, Union Budget 2027-28 Canonical: https://indianopinion.org/ficci-seeks-ltcg-exemption-tds-relief-in-budget-2027-28/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/ficci-seeks-ltcg-exemption-tds-relief-in-budget-2027-28/#story-in-brief How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/