Budget+: Has STT on derivatives been raised to generate revenue or curb speculation?
As India’s derivatives market becomes the world’s largest, policymakers are treating it like a modern vice. The STT hike in Budget 2026 mirrors sin taxes on alcohol and tobacco — meant to curb excesses while raising revenue — raising the question: investor protection or a new sin tax?
States don’t want their citizens to break laws. Some go to the extent of persuading them to keep away from committing sins by making them prohibitive. But there comes a time when they begin to secretly wish for more sins that become beneficial to conduct the affairs of the state.
In all fairness, it becomes difficult to catch this seemingly baffling transition.
In all fairness, it becomes difficult to catch this seemingly baffling transition.