FM may bring in commodity transaction tax this budget: Report

The finance ministry is planning to bring in commodity transaction tax (CTT) in upcoming Union Budget 2013-14 to ensure better regulation and transparent regime, said a media report.

The report quoted finance ministry official as saying that CTT was not intended to maximise the government's revenues, as it would add mere Rs 3,000 crore a year to the kitty, but for regulation and to bring in more transparency in commodity transactions on exchanges.

On the concerns of commodity exchanges and the consumer affairs ministry, the finance ministry official said that people with substantial investible surplus transacted at commodity exchanges and there should not be a problem in paying tax.

Still, he said, final call would be taken by finance minister P Chidambaram who himself proposed this tax first time in 2008-09 but never notified due to pressure from political parties and industry.

The proposal was to levy 0.017 per cent tax on commodity derivatives trade, in line with securities transaction tax (STT).

Read more about: union budget 2013, tax
Story first published: Thursday, February 7, 2013, 9:30 [IST]
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