1/4% Tax on all stock trades pushed in NY Times today

[bukkan]

Quote from Billy Thunder:

It is a savings tax, investor tax or retirement tax. There is no such thing as a trader tax or speculative tax.

there is. here (in India) it is know as Securities Transaction Tax or STT. for delivery one has to pay .25% of turnover which is borne by both the buyer and the seller. in futures segment its .017% borne by the seller.

stt is also present in many other countries and is a efficient way to collect taxes. good thing for the govt but not good for us poor traders

 

[TraDaToR]

I am with Billy Thunder et al for this matter.

If Obama had just slightly agreed to the principle of this tax, thing would have gone much further than just giving mandate to the FMI to study it.

It seems it was the climax of this pro-transaction tax stuff, much more scary than De Fag-zio bill, because it was on a global scale, which is the only way to impose it.

The US is the number one speculating country, attracting enormous amount of money through its financial exchanges. Obama wants to preserve what is remaining an attractive sector, contributing to the strengthening economy.

 

[gkishot]

Quote from bukkan:


stt is also present in many other countries and is a efficient way to collect taxes. good thing for the govt but not good for us poor traders

It might be efficient in terms of it's simplicity but I doubt it's efficient in terms of the revenue size which should be the government's final goal.

 

[zdreg]

Quote from bukkan:

there is. here (in India) it is know as Securities Transaction Tax or STT. for delivery one has to pay .25% of turnover which is borne by both the buyer and the seller. in futures segment its .017% borne by the seller.

stt is also present in many other countries and is a efficient way to collect taxes. good thing for the govt but not good for us poor traders

cheer up. it may be gone in the next few years the CTT is already gone.

http://business.rediff.com/report/2009/jul/06/budget09-govt-scraps-ctt.htm

http://profit.ndtv.com/2009/06/08204819/Sebi-in-favour-of-scrapping-of.html

it is not an efficient way to collect taxes because vol. dries up.

 

[drukes1234]

Quote from bukkan:

there is. here (in India) it is know as Securities Transaction Tax or STT. for delivery one has to pay .25% of turnover which is borne by both the buyer and the seller. in futures segment its .017% borne by the seller.

stt is also present in many other countries and is a efficient way to collect taxes. good thing for the govt but not good for us poor traders

I thought the Indian STT was being abolished or at least I recall there being plans for that..?

 

[drukes1234]

Retard DeFazio on CNBC in a bit

 

[bukkan]

Quote from gkishot:

It might be efficient in terms of it's simplicity but I doubt it's efficient in terms of the revenue size which should be the government's final goal.

its pouring money for the govt. before stt nobody knew how much the govt earned from capital gains (a wild guess would be below 1K Crores INR). with STT its more than 10K Crores INR.

i Crores = 10000000.

 

[bukkan]

@zdreg - volume didnt dried up after the imposition of STT. STT was introduced in 2004 and volumes in NSE rose leaps and bound irrespective of STT. of course volume was less the last year or so, but its more due the bear mkts isnt it.

@drukes - ya. a new tax code is being discussed which calls for the abolishion of stt. finger crossed

 

[zdreg]

Quote from bukkan:

@zdreg - volume didnt dried up after the imposition of STT. STT was introduced in 2004 and volumes in NSE rose leaps and bound irrespective of STT. of course volume was less the last year or so, but its more due the bear mkts isnt it.

@drukes - ya. a new tax code is being discussed which calls for the abolishion of stt. finger crossed

it is difficult to determine what the volume would have been without the tax. india is growing so fast.it overwhelmed the negative effect of the tax.

the 2nd article in my previous post discussed the possibility of stt removal.

 

[bukkan]

Quote from zdreg:

it is difficult to determine what the volume would have been without the tax. india is growing so fast.it overwhelmed the negative effect of the tax.

the 2nd article in my previous post discussed the possibility of stt removal.

stt for options was reduced by a huge margins a year or so back. for example if previouly stt for one nifty contract was 50 INR, now it is not even 5 INR. but that didnt boosted the volumes in option by even a trickle.

it would be inappropriate to compare India with US. Indian markets are still an "exotic" one and is highly inefficient and that inefficiency effectively absorbed the stt. US on the other hand is a mature and efficient market and any imposition of STT or its like will kill the financial mkts with global implications.