Budget and Markets: Will FM end the buyback party?
Thu, Feb 1, 2024 10:57 AM

Budget and Markets: Will FM end the buyback party?

A Flip by Shubhangi Gupta
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Tax experts suggest that shifting the tax burden from listed companies to shareholders would be more equitable, bringing buyback taxation in line with dividend taxation. Currently, companies pay a flat 23.3% tax on distributed income through buybacks, while shareholders pay no tax. However, there are concerns that this could result in value erosion for shareholders who do not participate.

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