FinMin to notify CTT soon; processed food may attract tax
Finance Ministry will soon notify the Commodity Transaction Tax (CTT) on non-agricultural items like gold and silver and is likely to bring some processed food items under the tax ambit.
New Delhi: Finance Ministry will soon notify the Commodity Transaction Tax (CTT) on non-agricultural items like gold and silver and is likely to bring some processed food items under the tax ambit.
In the 2013-14 Budget speech, Finance Minister P Chidambaram had said that CTT will be levied on non-farm items at the rate of 0.01 percent.
"We are working hard to implement CTT as soon as possible," sources said.
Besides gold, silver, crude oil and base metals, the ministry is likely to bring 11 processed farm items like sugar, soya oil and guar gum under CTT, they said.
However, pure agri-commodities such as wheat, barley and chana will not attract CTT. Coriander, cardamom, cotton and guar seed is also likely to be out of the CTT, sources said.
CTT is like Securities Transaction Tax (STT) and would not be applicable on spot trading.
Sources said the implementation of CTT has been delayed as there have been consultations between the stakeholders and the Finance Ministry over the list of non-agri commodities to be brought under the ambit of CTT.
The exchanges and brokers are of the view that CTT would discourage day-traders and speculators, resulting in a big drop in business of five national bourses.
There are 22 commodity bourses in the country, of which six of them operate at national level. The combined turnover of these bourses stood at Rs 170,46,840 crore in 2012-13, down by six percent from the previous fiscal.
Of the total turnover, more than 80 percent comes from non-agricultural commodities.