25Feb

Union Budget 2015-16 India Expectation : Expect commodity transaction tax to be removed, Says MCX

MCX is hoping that the commodity transaction tax will be removed in the upcoming Union Budget, according to PK Singhal, Joint Managing Director . In an interview with CNBC-TV18, Singhal says Taiwan is the only other country which levies a CTT.

He says commodity trading volumes have come down significantly since the imposition of CTT, and this is also leading to grey market transactions in which the government gets no revenue at all. Average daily turnover on MCX has fallen from Rs 50,000 crore to Rs 30,000 crore since CTT was introduced, Singhal says.

MCX has regained the market share it lost in the aftermath of the scam at NSEL, Singhal says. He feels the shifting of the Forwards Market Commission to the Finance Ministry from the Consumer Affairs Ministry is a positive step.

25Feb

Union Budget 2015-16 India Predictions : Unlikely to be an ‘incremental’ Budget

Manish Chokhani of Enam Holdings believes the bullrun is definitely here to stay. However, in the short-term, he says the upcoming Budget will be the deciding factor in just how this bullrun unfolds.

Speaking at the Axis Capital Conference titled “India on the move”, he says the sustainability of this bullrun will depend on what moves the government makes in getting India’s economic growth back on track, and just how it brings back investors.

Manish Chokhani said that he expects this government to present a pathbreaking or a bold, pragmatic business growth oriented Budget.

“It is unlikely that we will see an incremental Budget or at least that is the hope at this point in time,” he said. “But we have been disappointed in the past. Let us hope the Finance Minister delivers this time around on the growth promise that he has made.”

25Feb

Union Budget 2015-16 India Update : Excise hike on petrol, diesel to add Rs 20,250 cr

The government will yield an additional Rs 20,250 crore this fiscal from the excise duty hiked on petrol and diesel, said Minister of State for Finance Jayant Sinha in a written reply to the Rajya Sabha.

This is the first time the government has stated just how much it stands to gain from the excise duty hike. It has raised the excise duty on petrol and diesel four times since November, a move that prevented consumers from enjoying the full benefit of 60 percent fall in crude prices.

The basic excise duty on branded & unbranded petrol stands at Rs 8.95/litre and Rs 10.10/litre, respectively, Sinha informed Rajya Sabha.

25Feb

Union Budget 2015-16 India Update : Food subsidy of Rs 8,228 cr released to 5 states under NFSA

Under the National Food Security Act, the Centre has released Rs 8,228.01 crore so far this fiscal, to five states where procurement of grains is decentralised.

In a written reply to the Lok Sabha, Minister of State for Food Raosaheb Patil Danve informed that five states — Bihar, Punjab, Madhya Pradesh, Chhattisgarh and Rajasthan — have been released Rs 8,228.01 crore as subsidy for implementation of the food security act. As of now 11 states have started implementing the food law.

Of that, five states have decentralised procurement system, where they procure grains themselves and hand over additional stock to Centre. The remaining 6 states have centralised procurement where FCI procure the entire output on behalf of Centre. The minister also informed that so far 21.38 million tonnes of foodgrains have been allocated to 11 states under the Act.

The states which have started implementing the Act are: Bihar, Chhattisgarh, Delhi, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Chandigarh.

In another reply, Danve said that as per the provisions of food law, identification of eligible households for receiving subsidised foodgrains under Targeted Public Distribution System (TPDS), is entrusted to state governments. While replying to another question, the minister added that there is no proposal for any amendment to the act.

Danve also said that direct transfer of cash subsidy is one of the options discussed in various fora for checking diversion of foodgrains. And it can be taken up on specific requests from states/UTs.

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