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Finance Minister Pranab Mukherjee announced the scrapping of the CTT while presenting the Budget for 2009-10. He said the decision is in step with the recommendation of the Prime Minister's Economic Advisory Council.
The Government had proposed 0.017 per cent as the CTT (Rs 17 on the transaction value of every Rs one lakh trade on commodity exchanges).
The CTT was announced in line with the Security Transaction Tax (STT) in the 2008-09 Budget by then Finance Minister P Chidambaram but was not notified following stiff opposition from regulators and exchanges.
Reacting to the decision, commodity market regulator FMC Chairman B C Khatua said, "We are very happy for industry."
Expressing satisfaction, a spokesperson with the country's largest commodity exchange MCX said, "Thanks to the Government for taking the decision. This will make the domestic market more efficient to compete globally and risk management will become more effective."
Similarly, leading farm commodity exchange NCDEX spokesperson Madan Sabnavis said, "This is a blessing for the entire commodity market. We were eagerly looking for this. It will restore confidence in the market."
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Lot of global tensions is going on at this time. Japan is expected to pull out its money from the global market as they want to revamp their country now. In current scenario anything can happen in the Share market Investors are advised not to panic and stay invested only safe traders and Stock Tips investors should exit their long positions on every high and one can use every decline as an opportunity to enter market again. Regards commodity tips