Businessmen demand reduction of 'Tax'. Stock Market News.

Businessmen demand reduction of 'Transaction Tax' in the budget.

New Delhi:
Commodity Participants of India (CPAI), the apex body of commodity market participants, has urged the government to reduce the high cost of the business in the budget. He says that there has been a huge reduction in deals due to high cost.

In a presentation to the Finance Ministry, CPAI stated that the cost of transactions in various assets in India is four to 19 times more than the cost of transactions in the US, China and Singapore. The reason for this is the excess of securities transaction tax (STT) and commodity transaction tax (CTT). The organization wants the government to reduce the rates of STT and CTT or remove it altogether so that the number and size of deals can be increased.

CPAI said, "Due to the high cost of trading, the volume of deals has come down significantly. This has affected the capital situation and the cost of buying and selling of shares has increased." The organization has told the government that instead of assuming the expenditure as an expenditure, STT should be treated as non-refundable tax paid earlier or it should be exempted under Section 88E of the Income Tax as provided by 2008. Commodity trading deals have come down drastically due to high trading costs.

After the implementation of CTT, from 2013, in the commodity markets where transactions of Rs 69,449 crore per day were being done in 2011-12, they have reduced to Rs 27,291 crore per day in 2018-19. Thus, the value of deals fell by 61 per cent.

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