The committee to overhaul the 60-year-old income tax law is considering a single levy on capital market investments, a long pending demand by industry. The panel is expected to soon make a presentation to the Prime Minister’s Office.

It may consider doing away with the securities transaction tax (STT) to make the capital market attractive to investors. However, some members in the committee have argued that the STT helps track transactions better, making a case for retaining it. “There is a broad understanding among the panel members that the dual levy on capital ...