New Delhi, Feb. 18 -- In 2018-19, the year before the covid pandemic broke out, the securities transaction tax (STT) earned by the Union government was Rs.11,528 crore. In 2024-25, the government hopes to earn Rs.55,000 crore through it. The budget estimate for 2025-26 is Rs.78,000 crore.

First introduced in 2004, STT is levied on transactions involving listed securities on stock exchanges and on units of equity mutual funds (MFs) being redeemed. It's a part of the income tax earned by the Union government. In 2018-19, it formed around 2.4% of the income tax collected. In 2024-25 and 2025-26, it's expected to form 4.4% and 5.4%, respectively.

If the government collects Rs.78,000 crore in STT during 2025-26, it would mark a 577% jump fro...