Samir Arora’s ‘Zero LTCG Tax’ Proposal for Litecoin (LTC) Ignites Heated Debate with Rajeev Mantri

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    <li>Helios Capital founder Samir Arora's proposal to scrap long-term capital gains (LTCG) tax in India has sparked a war of words with Rajeev Mantri, managing director of venture investment firm Navam Capital, who strongly opposed it, calling it a ‘laughable idea’.</li>
    <li>Arora highlighted that while gross foreign direct investment (FDI) in India is $71 billion, the net FDI is only $10.6 billion, which he believes is detrimental to medium-term growth prospects.</li>
    <li>Mantri responded by questioning the rationale behind a tax holiday for secondary market traders or investors, emphasizing that such proposals are self-serving and impractical.</li>
</ul>
<p><strong>Samir Arora's proposal to eliminate LTCG tax in India has ignited a heated debate, with significant implications for the country's investment landscape.</strong></p>
<h2><strong>Arora's Argument for Scrapping LTCG Tax</strong></h2>
<p>Samir Arora initiated the discussion on the microblogging platform 'X', pointing out that despite gross FDI figures being impressive, the net FDI remains significantly lower. He argued that this discrepancy poses a risk to India's medium-term economic growth. Arora suggested that large repatriations by private equity (PE) funds are a major factor, and this issue could worsen if India continues to favor PE over foreign institutional investor (FII) funds.</p>
<h3><strong>Mantri's Counterarguments</strong></h3>
<p>Rajeev Mantri countered Arora's proposal by labeling it as narrow and self-serving. He questioned why secondary market traders or investors should receive a capital gains tax holiday, arguing that such a move would not benefit the broader economy. Mantri emphasized that every sector seeks tax relief, but the government needs to maintain revenue streams to fund public services and infrastructure.</p>
<h2><strong>Implications for Foreign and Domestic Investors</strong></h2>
<p>Arora argued that attracting FII money requires minimal policy changes, primarily the relaxation of capital gains tax. He believes this would benefit domestic investors, attract risk-taking capital, and enable the government to raise significant funds through public sector unit (PSU) divestments. Additionally, higher securities transaction tax (STT) collections could offset the revenue loss from scrapping LTCG tax.</p>
<h3><strong>Global Comparisons and Local Context</strong></h3>
<p>Arora pointed out that no country, including the US, UK, and Japan, imposes capital gains taxes on foreign investors. He argued that India should not be an exception and that scrapping LTCG tax could enhance market sentiment and attract more FII money. However, Mantri retorted that these countries have open capital accounts and different economic systems, making it impractical for India to adopt their policies piecemeal.</p>
<h3><strong>Conclusion</strong></h3>
<p>The debate between Samir Arora and Rajeev Mantri highlights the complexities of tax policy and its impact on investment. While Arora advocates for scrapping LTCG tax to boost FDI and market sentiment, Mantri warns against self-serving proposals that could undermine government revenues. The discussion underscores the need for balanced and well-considered tax policies that support economic growth while ensuring fiscal stability.</p>