The Centre is undertaking a comprehensive relook at capital market taxation to boost investor sentiment, by considering options ranging from scrapping the securities transaction tax (STT) to offering tax concessions on interest income from corporate bonds to both domestic and foreign investors. It is also examining proposals for a tiered long-term capital gains (LTCG) tax structure for equities, featuring lower rates for longer holding periods, and a possible exemption after a period such as three to five years. LTCG reliefs are, however, low on its priority. Currently, LTCG attracts a 12.5% tax for holdings of more than 12 months.