Budget 2013 proposes commodity transaction tax on non-agri futures trade to hit commodity exchanges
Amid speculation that the Finance Minister would impose CTT in the 2013-14 Budget to curb gold demand in view of high current account deficit, commodity exchanges and brokerage firms had made several representations opposing such a tax saying it will adversely impact the nascent market.
"With the imposition of CTT, the turnover will come down. It will negatively impact the market, especially MCX where maximum of non-agricultural commodities are traded," brokerage firm SMC Comtrade Chairman and Manging Director D K Aggarwal said.
However, he said that the Finance Minister has provided some respite to traders by treating CTT not as speculative trade but as business profit/loss.
The turnover from futures trade in farm items contributed only 13 per cent of the total Rs 144.17 lakh crore during first 10 months of the current fiscal. The remaining 87 per cent business came from bullion, metals and energy items.
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