New Delhi: In the face of demand to spare day traders and brokers from the transaction tax introduced in the Budget, Government today (July 16, 2004) said it would come out with clarifications on Monday (July 19, 2004).

"I will clarify the position on Monday when I reply to the discussion on the Budget," Finance Minister P Chidambaram said in the Lok Sabha.

He made a brief intervention during the debate on the Budget when Shiv Sena member Suresh Prabhu wanted to know when would the Government have a re-look at the proposal to levy 0.15 per cent transaction tax on all purchases of shares and bonds.

At a post-budget meeting with apex chambers FICCI (Federation of Indian Chambers of Commerce and Industry) and CII (Confederation of Indian Industry), Chidambaram had promised to have a "re-look" at the transaction tax rate of 0.15 per cent.

"We must admit that transaction tax is efficient, neat, non-regressive, eliminates tax avoidance and everybody contributes to the Exchequer... But I am prepared to re-look at the numbers," he said. The Finance Minister had also held a meeting with a delegation of brokers on the issue. The delegation had suggested three options, including exemption of brokers from the tax.

Brokers had also suggested that transaction tax on securities be imposed only on FIIs (Foreign Institutional Investors) and NRIs while exempting the domestic investors, brokers, day-traders and arbitrageurs.