statesman news service
KOLKATA, 20 JUNE: The 0.01 per cent commodity transaction tax (CTT) on various non-agricultural commodities proposed by the finance minister Mr P Chidambaram in his Union Budget 2013-14 will become a reality from 1 July.
The CTT was first proposed in the Union Budget 2008-09. The delay in implementation of the tax was due to opposition from the food, consumer affairs and public distribution ministry and brokerages on the pretext that when the market is attaining volumes and maturity, the CTT would dampen business in the commodity bourses.
Only futures trading will attract the tax and not spot trading. This is likely to curb speculation. However the tax is unlikely to fuel inflation but would affect volumes in the futures market.
The CTT is not applicable to agri-commodities but will apply to metals and energy among commodities traded in futures exchanges.
While non-agricultural commodities, including gold, sugar and edible oils, will come under the tax, 23 farm-commodities including almond, barley, wheat, cardamom, coriander, cotton, potato, mustard seed will be exempted from the tax.