Budget 2022: Centre boosts STT target as mop-up beats expectation

Securities transaction tax (STT), which is levied on purchase and sale of equity shares and their derivative contracts, has emerged as a healthy source of income for the government. The Centre is now budgeting an STT collection of Rs 20,000 crore this fiscal year as well as the next. The spurt in market capitalisation and trading volumes has helped the STT collection exceed the Budget Estimates of Rs 12,500 crore for the ongoing fiscal year and given the government the confidence to set a target that is 65 per cent higher than the previous six-year average.

STT rates range between 0.01