Recent changes to derivatives trading, such as weekly expiry and adjusted lot sizes, could impact the government’s tax revenue, says Siddhartha Khemka, Senior Group VP and Head of Research (Retail) at Motilal Oswal Financial Services.
While the strong market performance in recent years has boosted tax income from capital gains and transaction taxes, Khemka believes the reduced trading activity resulting from these changes may force the government to revise its future tax projections. He also states that no major tax regime changes are expected in the upcoming budget.