Need to ensure parity in tax rates
For a long time, the main concern has been the prevalence of tax arbitrage under different investment vehicles even though the underlying investment asset class is the same, due to the lack of a single regulator. I think it’s high time the finance ministry considers having parity in tax structures for the same asset class no matter which product it comes under. This will allow investors to choose the asset class based on merit. Investments done on the basis of purely tax differential while overlooking other inherent features of the product may not help achieve the desired results.
