The Hindu Business Line : We will review transaction tax if it fails, says Chidambaram

THE Finance Minister, Mr P. Chidambaram, today said that he was open to reconsidering the Banking Cash Transaction Tax (BCTT) if it failed to achieve the objective of creating a tax-trail on black money transactions through the banking channel.

Replying to a debate in the Rajya Sabha on the Finance Bill, Mr Chidambaram, however, expressed confidence that the objective of creating the tax trail would succeed.

``The objective is not to raise revenue but establish tax trail. I am confident we will succeed. If we fail, we will reconsider,'' Mr Chidambaram said. No questions would be asked if there were genuine withdrawals not linked to money laundering.

The Finance Minister also said that the Government would ensure that there was no harassment of companies on account of the Fringe Benefit Tax (FBT).

"We are all here. We will address the problem, if there is any,'' he said.

Mr Chidambaram clarified that all statutory contributions towards pension would continue to be exempted from FBT. He said that voluntary contribution towards superannuation funds mainly for high-end managers would attract tax.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Basell acquisition — HPL still undecided on joining Chatterjee-led consortium

ONGC reports 3 oil, gas finds on west coast, KG Basin

We will review transaction tax if it fails, says Chidambaram

A space odyssey to help urban, rural planners

Banking, pharma stocks score gains

Dividend pay-out raised to 40 pc — BI sets tough norms

Pvt bank stocks buoyant as cap on voting rights goes

Left parties oppose lifting of voting rights cap