As a market participant, I always hope the budget will reduce STT, but it keeps going up. STT was introduced when LTCG was made 0, but now that LTCG is back… 😬

The 60% F&O STT increase from Budget 2024 (0.0125% → 0.02% on futures and 0.0625% → 0.1% on options) didn’t impact volumes much at first, the bull market continued with surging participation. But markets don’t always have bull runs; the impact showed up in the year we just had.

Projected STT collection for FY 2025-26 was ₹78k crores. Collection so far (until Jan 11) is ~₹45k crores. Even if we estimate another ₹12k crores by March 31, that brings the total to ₹57k crores, almost 25% below the projection. I think the government would’ve collected a lot more without the 2024 hike. 🙈

Of course, disclaimer: I’ll benefit from lower STT, so my opinion is naturally biased.

BTW, the budget is on a Sunday this time, and markets are open. We’re one of the few brokers that allow BTST trades on Sunday, and you won’t get same-day NAV when buying MFs on Sunday.

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