Saturday, July 12, 2014

‘Both STT, CTT rates are already very low’ says Revenue Secretary

‘Both STT, CTT rates are already very low’ says Revenue Secretary
Cannot understand the expectation to lower them further, says Revenue Secretary

The stock and commodities market seem to be disappointed as the Budget has not revised the Securities Transaction Tax (STT) and the Commodities Transaction Tax (CTT). What was the reason behind this decision?

I don’t know what is the expectation? Because the current rates, of both STT and CTT, are very low. And we have also prescribed that if you have paid the CTT, income from such a transaction will not be treated as speculative income. This, by itself, is a very strong signal. There has to be a tax and rates are very low.

People were also expecting some relief on gold — of import duty being lowered from 10 per cent. Since duty revision can happen outside the Budget, can we expect something during the current fiscal?

The current account deficit, like the fiscal deficit, had been a matter of concern. Things have improved. CAD came down at the end of the last fiscal.
But we need to be cautious, considering the volatility in international markets. International crude prices are rising due to the Iraq problem. So, we have to wait and see how that plays out.

Does this mean there will be no immediate relief on gold?

I cannot say about the future. As of now, all I can say is that there is no decision to reduce the duty. The position is constantly changing, we will see.

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