New Delhi, Oct. 16 -- The double burden of securities transaction tax (STT) and capital gains tax has long been a sore point for investors. Nilesh Shah, MD of Kotak Mahindra AMC, says the finance minister's recent remarks raise hopes of a better balance between the two.

Finance minister Nirmala Sitharaman acknowledged on 13 October the debate over long-term capital gains (LTCG) tax and STT, but did not say whether the government would consider changes in the upcoming Union budget.

While it is a major hurdle for global investors, taxation alone isn't driving outflows, Shah said. Edited excerpts:

STT was initially introduced in lieu of capital gains tax, but capital gains tax was later brought back and rates for both were increased. This...