Consumer affairs ministry opposes CTTJanuary 25, 2012
Consumer affairs ministry opposes CTT
News from Livemint:
New Delhi: Amid reports that the finance ministry is mulling a tax on commodity derivatives in the forthcoming Budget, food and consumer affairs minister K V Thomas has written a letter to the finance minister saying any such move would distort the nascent market.
“… I would like to defer if there is an intent of introduction of commodity transaction tax (CTT) on the commodities derivatives market in the ensuing Finance Bill 2012,” Thomas said in a letter to finance minister Pranab Mukherjee.
The ministry of consumer affairs regulates the commodities market through the Forward Markets Commission. Currently, there are five national and 18 regional commodity exchanges.
Thomas’ observation came in reaction to media reports that the finance ministry was mulling over reopening the old proposal made by then finance minister P Chidambaram in the 2008-09 Budget to levy a 0.017% tax on commodity derivatives trade (Rs 17 on Rs 1 lakh worth transaction).
Pointing out that a CTT on commodities derivatives on the lines of Security Transaction Tax (STT) will hamper the growth of the organised commodity market in India, the minister said, “In the era of reforms, introduction of CTT will act as a deterrent and distort the market, having an adverse impact on not only stakeholders, but also th…………… continues on Livemint
US Consumer Bureau Mulling Rule Exemptions for Smaller Banks
News from BusinessWeek:
Jan. 24 (Bloomberg) — The U.S. Consumer Financial Protection Bureau may weigh size or market share in exempting community banks from its rules to shield them from the greater regulatory burdens facing their larger rivals.
Richard Cordray, the former Ohio treasurer and attorney general appointed to head the consumer bureau Jan. 4, touted the idea of exclusions for smaller lenders in a conference call organized by the Independent Community Bankers of America.
“The bureau will be considering two-tiered regulatory requirements and exemption thresholds as it writes regulations so that community banks will be able to conduct their business without overly burdensome regulatory requirements,” the Washington-based trade group said in its internal newsletter, citing Cordray’s comments during the Jan. 12 call.
Jen Howard, a spokeswoman for the bureau, declined to comment and didn’t dispute the newsletter account.
Congress created the bureau as part of the Dodd-Frank Act after lawmakers said existing regulators failed to protect consumers before the credit market collapse that led to record home foreclosures and bailouts for lenders including Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc.
In promising to favor smaller firms, Cordray is following in the…………… continues on BusinessWeek