Raghav Chadha Advocates for Tax Reforms to Boost Investments in India
Call for Tax Reforms in Parliament
On Tuesday, Raghav Chadha, a prominent leader of the Aam Aadmi Party, urged for a reduction in capital gains taxes, arguing that excessive taxation hampers long-term investments.
During his address in the Rajya Sabha, Chadha highlighted the high tax burden on investments in India and proposed incentives for interest accrued from bank savings accounts.
He emphasized that the current tax treatment of long-term investments as short-term speculation is problematic and requires reform.
Chadha noted that due to global uncertainties, foreign investors withdrew around Rs 1.60 lakh crore from Indian equities over the past year.
In contrast, domestic investors contributed approximately Rs 7 lakh crore to the market, which helped stabilize Indian equities.
He stated, 'A fundamental economic principle is to promote investments.'
Chadha further asserted that 'patient capital' should be honored rather than penalized, warning that excessive taxation discourages wealth generation.
He pointed out that the middle class typically invests in savings accounts or fixed deposits.
To support these investors, he recommended raising the tax-free threshold for bank interest income.
Additionally, he proposed tax benefits for individuals who maintain fixed deposits for over five years.
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โ Raghav Chadha (@raghav_chadha) December 17, 2025
I explained in Parliament how Investment in India remains heavily taxed, and why it needs to change. pic.twitter.com/gWQaMBbWeZ
Chadha also introduced the idea of a Tokenisation bill, which he believes would facilitate fractional ownership of assets through digital tokens.
He described asset tokenisation as a groundbreaking financial innovation of the 21st century.
The proposed legislation would allow for the division of real estate, infrastructure projects, and commodities into digital tokens.
Chadha explained, 'These tradable tokens can be utilized for buying or selling, enabling profits.' He emphasized that this would make significant assets accessible not just to the wealthy but also to the average citizen, allowing them to invest in substantial assets and reap considerable returns.
He expressed optimism that this legislation would yield better returns for the middle class.
Chadha also praised the recent reforms in the Goods and Services Tax (GST) system, calling them 'landmark.'
He stressed the importance of ensuring that the benefits of these reforms are fully passed on to consumers by private companies.
The new GST framework, which features a two-rate structure of 5% and 18% tax slabs, was implemented on September 22 for a majority of items.