The Hindu Business Line : Chambers hail Chidambaram's move on transaction tax

The Confederation of Indian Industry President, Mr Sunil Kant Munjal, said, "Directionally, the system of having differential rates for various securities appears to be correct." Hoping that the modifications address the concerns of market participants, he added, "The reduction in the incidence of the transaction tax on derivatives and daily traders should provide relief."

According to Federation of Indian Chambers of Commerce and Industry (FICCI), the market sentiment will improve due to "the abolition of long-term gains on mutual funds."

The industry associations felt that the move to share 0.15 per cent tax on delivery-based transactions among both sellers and buyers is in line with "international norms".

Welcoming the announcement, the Associated Chambers of Commerce and Industry of India (Assocham) President, Mr Mahendra K. Sanghi, felt that the Government should have further reduced the imposition of transaction tax from the "higher percentage point on all the securities transactions".

According to Mr Ravi Wig, President, Phdcci, "The differential rates would bring in partial relief for the equity and bond market. The equity market needs to be supported at the time when retail investors are shying away from investing in the market." He also suggested a total exemption for the daily traders.

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