New Delhi: Finance Minister P Chidambaram has said the government will take a call on notifying the Commodities Transaction Tax and ruled out imposing a ban on the futures trading of more commodities.

"We will see... At least in the first year, it is not intended to be a great revenue-earning measure. We can take a call on the date," he told reporters while replying to a query about delay in notifying Commodities Transaction Tax (CTT) even after Parliament approval.

Asked whether ban on futures trading would help in containing food prices, the finance minister said, "According to the expert committee, there is no connection between banning forward trading and prices."

"Regardless of the expert's view, we have banned forward trading. You can call that wise economic decision or a wise political decision, we have taken that decision. But expert says there is no causal connection between one and the other," he said.

On the issue of CTT he said, like Securities Transaction Tax (STT), Commodities Transaction Tax was intended to bring some order and reduce volatility in the markets.

During the Budget presentation, he had said, "Transaction in commodity futures has come of age. Hence, I propose to introduce Commodities Transaction Tax (CTT) on the same lines as STT on options and futures."

Under the proposal, Rs 17 will be charged as CTT on a transaction of Rs 1 lakh. The proposal has been opposed by the commodity exchanges and regulator, the Forward Market Commission. Asked if the government plans to ban more commodities, Chidambaram said, "There is nothing more to ban."
Source : PTI