Commerce Chamber Asks FM to Reduce Taxes to Prevent Foreign Outflow

October

2026

The Punjab Pradesh Beopar Mandal (PPBM) demanded that the union government abolish the Long-Term Capital Gains Tax and reduce the Securities Transaction Tax to encourage investment in the Indian stock market, curb foreign capital outflows, and bolster the country’s economy. PPBM president Piara Lal Seth said, ‘Union Finance Minister Nirmala Sitharaman’s willingness to listen to various stakeholders’ views on equity taxation was a positive sign. However, the government has not yet made a final announcement on abolishing or reducing these taxes. Seth said that a 12.5% tax was applicable on long-term capital gains exceeding USD 1,318 in a financial year on eligible listed equity investments. Other factors driving these outflows are global interest rates, a stronger dollar, crude oil prices, and investment opportunities in other countries. Meanwhile, Panjab Finance, Planning, Excise, and Taxation Minister Harpal Singh Cheema announced the unearthing of a multi-state Goods and Services Tax (GST) fraud network involving a suspected taxable value of USD 254.34M and alleged tax evasion of USD 45.26M. Cheema said a First Information Report has been registered in Ludhiana under the provisions of the Bharatiya Nagarik Sanhita and Section 132 of the Central Goods and Services Tax Act. Additionally, the Punjab and Haryana High Court has sought a response from the Panjab government on a plea challenging the state’s purported move to transfer 10 market committees to the Punjab Mandi Board. The PIL questions whether the Mandi Board had the authority to float and award tenders before the formal transfer of the committees. Furthermore, the Punjab State AIDS Control Employees Welfare Association has warned of a statewide agitation if its long-pending demands, including a 20% salary hike, are not addressed. The association accused the state government of ignoring its repeated assurances and delaying action. Concurrently, five months after food supply disruptions began at Anganwadi (day-care) centers across Panjab, children, pregnant women, and lactating mothers continue to face difficulties. An Anganwadi worker in Jalandhar, Mandeep Kaur, said, ‘For the past five months, we have not received any food to serve children. Earlier, we would buy biscuits and toffees with our own money. Now, we are asking the children to bring their own tiffins’ (earlier coverage).