We wanted to simplify approach to taxation: FM at press meet

“We wanted to simplify the approach to taxation – also for the capital gains. Second, if anything, the average taxation has actually come down when we say it is 12.5 per cent. We have worked out for each of the different asset classes...The point that we brought it down from below the average to 12.5% encourages investment in the markets,” says Sitharaman explaining the 12.5 per cent tax on long-term capital gains.