*******In FY24-25, LTCG collections on equities and related investments garnered approximately Rs.1.29 lac crores–thus resultant fiscal costs could be prohibitive [2] As it is–effective tax burden on distributed corporate profits is as high as 52.04%–comared to LTCG 14.76%–Scrapping LTCG will widen this gap further [3] Potential revenue loss would be two fold– the direct loss from abolishing the LTCG tax and a possible further decline in corporate income tax collections as the bias against profitability grows [4] Worse-the market may not recover even after LTCG is scrapped–loss of revenue would however be permanent– Courtesy BL