The Hindu Business Line : FMC, Commexes expect withdrawal of CTT

NEW DELHI: The Forward Markets Commission (FMC), along with commodity exchanges (Commexes) expect that the Finance Minister, Mr Pranab Mukherjee will drop the yet-to-be-notified commodity transaction tax (CTT) in his Budget.

The CTT was announced on the lines of security transaction tax in the 2008-09 Budget by the then Finance Minister Mr P Chidambaram but was not notified following stiff opposition from regulators and exchanges.

Even the Consumer Affairs Ministry was not in favour of imposing CTT as it felt this tax would hurt the growth of commodity futures markets.

“We are hoping that on Monday, there will be some clarity on CTT. Ideally, we want the tax to be withdrawn forever,” National Multi Commodity Exchange (NMCE) Managing Director, Mr Kailash Gupta said.

The commodity market regulator Forward Markets Commission (FMC) chief, Mr B C Khatua said, “We have sought withdrawal of CTT and we hope it is considered in the current Budget.” The Economic Survey too favoured removing CTT.

The NCDEX Spokesperson Mr Madan Sabnavis said, “We are hopeful that the CTT will not be implemented as the government is keen on the growth of the commodity markets.”

In last year's Budget, the government had proposed 0.017 per cent as CTT (Rs 17 for every Rs one lakh trade on commodity exchanges). - PTI

Next: Rupee recovers

Business Line | NUS Index |

Copyright copy; 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line