Pointing out that charges on Indian exchanges such as commodities transaction tax and securities transaction tax were higher than international market places such as Singapore and Hong Kong, a finance ministry official on Saturday called for reduction in these transaction costs over a period of time.
Currently, commodities transaction tax is levied at a rate of 0.01 per cent on non-agricultural commodities, while the securities transaction tax is charged at a rate ranging from 0.001 per cent to 0.2 per cent depending on the nature of transaction. Notably, a recent set of recommendations by a Niti Aayog committee suggested scrapping of commodities transaction tax on gold.
Speaking at the annual convention on ‘Capital Market & Commodity Market – Moving Towards $5 Trillion Economy’ organised by PHD Chamber of Commerce and Industry here, Additional Secretary, Department of Economic Affairs, CS Mohapatra said that the government has put in place necessary policy measures to bring about financial stability, and noted that the authorities have “almost” cleaned the NPA mess.
He also pointed out that the government has tried its best and put in place necessary policy measures to bring about financial stability in the institutional mechanism of the country which would make way to achieve desired objectives. With regard to non-performing assets (NPAs) situation, Mohapatra said: “We have cleaned it up almost and we have also strengthened through IBC (Insolvency and Bankruptcy Code), through NCLT (National Company Law Tribunal)…” He also pointed out that a critical tool towards achieving the $5 trillion economy will be to bring about more financial literacy and intensive financial inclusion. WITH PTI