NCDEX asks Government to review Commodity Transaction Tax (CTT) in the Budget 2020-21

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NCDEX asks Government to review Commodity Transaction Tax (CTT) in the Budget 2020-21

ANN | New Delhi | 30 Jan 2020

NCDEX has expressed its concern over the Commodity Transaction Tax (CTT) on processed agri commodities and has asked the government to review it in the upcoming budget 2020-21.

“The CTT levied on processed agri commodities has increased impact cost of market participants. The Indian commodity market has immense potential, as many of these commodities can set Indian prices as benchmark for global market. Hence the government should have a relook at its CTT policy in order to ease participation of large hedgers and traders by offering low impact cost”, the official release from NCDEX stated.

NCDEX also wants government to reframe its regulatory policies as SEBI has opened up gate for commodity markets by allowing Mutual Fund, Indices and Options participation in goods etc. though it termed the recently issued guidelines by SEBI as positive because it allows exchanges to launch options on goods suitable for farmers and traders in all the commodities.

“It will play a major role in stimulating agricultural marketing’, the official release said.

NCDEX also wants government to mandate banks to extend agri-credit only against eNWR (electronic negotiable warehouse receipts). The exchange feels that augmenting it with an appropriate credit guarantee structure by WDRA(Warehousing Development and Regulatory Authority) would further enhance the confidence amongst banks and boost Agri-financing.