Stock broker complains to FM about too many taxes in share market, real estate; here's how FM responded

Finance Minister Nirmala Sithraman's reply to a Mumbai broker's complaints on too many taxes and 'sleeping partner' analogy, left a recent event in a fit of laughter. A Mumbai based broker while complaining about too many taxes, called the government, 'Sleeping Partner' for brokers and investors paying tax at every turn.

Finance Minister's reply

Speaking at the "Vision for Indian Finance Markets", the broker said while investors were putting their money at risk, the government reaped the rewards by imposing a "heavy tax burden". The Finance Minister broke into laughter over the comparison.

The broker further emphasised that the government's earnings often surpass those of the brokers themselves while pointing out the different taxes imposed on every transaction, including GST, IGST, stamp duty, STT, and long-term capital gains tax.

"Today, the government of India is earning more than the broker," claimed the man.

He went on to say that while brokers and investors take substantial risks, the government do not.

"I am taking a whole lot of risk, and the government of India is taking away all of the profit. You are my sleeping partner, and I am the working partner," he said.

The broker also highlighted the challenges of buying a home in Mumbai and how taxes make it worse. "Today, we can't make payments in cash… so if I am buying a house, I will have to pay by cheque. My bank balance is purely after paying all the taxes to the government of India. But when I am buying a house, I have to pay 11 percent GST in Mumbai. So how will you assist a small person with limited resources and brokers who have to pay a hoard of taxes to the government?" the broker asked the minister.

For which in a jovial manner, the Finance Minister responded saying, "A sleeping partner cannot answer sitting here," eliciting laughter from the audience.

Meanwhile, FM's response garnered a backlash on social media as people expected a more serious answer from the FM on this issue.

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