Ahead of the Budget, the Commodity Participants Association of India (CPAI) said the government should look at waiving the Commodity Transaction Tax to boost trading volumes.
In its Budget proposal to the Finance Ministry, CPAI has urged the government to relook at Commodity Transaction Tax (CTT) as it has yielded little revenue and destroyed national market volumes by 60 per cent.
In addition, CTT encouraged liquidity, volumes and jobs to shift outside India.
"Given low collection, the easiest way is to remove CTT," the association said.
Since the introduction of CTT in 2013, the volume in commodity markets has plunged by 60 per cent, while the Government collected only ` 667 crore as revenues.