Budget 2013: Allow commodity transaction tax, says CITI Textiles

NEW DELHI: Stating that the textiles industry needs regular cotton supplies and cotton has been going through tremendous price fluctuation in recent years, CITI Textiles in its pre-budget memorandum has asked the government for a Commodity Transaction Tax (CTT) in the upcoming budget 2013.

However, CITI Textiles doesn't want the commodity transaction tax to be imposed on the commodity exchanges.

"Introduction of CTT would adversely affect the participation of textile units in and constrain the operations of the commodity exchanges," CITI textiles said. "We would, therefore, request that CTT may not be imposed on the commodity exchanges," it added.

According to CITI Textiles it is necessary to provide for viable price risk management for the textile industry through hedging the cotton transactions.

Finance Minister P Chidambaram will present the Union Budget 2013-14 on February 28, 2013. The industry and markets are looking at the upcoming budget to boost economic growth.