Govt has headroom to scrap LTCG tax, absorb ₹50,000 crore loss: SBI Research

The government has sufficient fiscal headroom to absorb an estimated ₹40,000-50,000 crore revenue loss for FY28 if it abolishes the long-term capital gains (LTCG) tax, SBI Research said. The potential revenue shortfall would amount to around 0.1-0.2% of GDP. To offset some of the revenue loss, the report suggested increasing the securities transaction tax (STT) by 50%.