Re: Budget 2016

[malanp]

Most probably this negative list of BOI should be something that restrict foreign companies to start business.
BOI did not encourage/welcome or permitted Tile sector companies in sri lanka. Now that restriction removed..

[yaka]

Customs says all proposals of the 2016 Budget that include taxation to come into effect from midnight today.

I'm just curious shashimal, is it possible???

coz this is budget proposal and shouldn't it be passed from the house??

[Future123Active Member]

Just catching up with the budget as I was occupied with various things.

This is totally a different budget from the interim budget. An investor friendly and people's friendly budget. What a change from RK? Devil is not so black as he is painted. All I wanted to see is our country progressing and people progressing.

I was browsing the budget speech key notes and highlighted some important points. Some +++++
1) No land tax for foreigners - Must be favourable to JKH as their new project waterfront would benefit from this. OSEA also would benefit
2) Revised corporate taxes of 15% (Except banks, Finance companies, insurance, betting, gaming, liquor and tobacco. These are taxed at 30%). We can expect better dividends from the companies in future.
3) Tons of positive measures for export companies
4) Finance companies will have massive benefits after 1 June 2016. The banks will not be allowed to carry out leasing and a limitation for pawning (5% of total lending).
5) A lot for the agriculture sector
6) Share transaction levy abolished

Some negatives
1) Reduction of exemption limit for VAT to 12 million a year. Many small businesses will get caught
2) Banks are affected in many ways. No lease after 1 June 2016, Compulsory loans to agri sector
3) Vehicle owners are affected
4) 2% increase in corporate tax for some businesses
5) Tile sector removed from BOI negative list. Not sure how this would affect LWL and RCL. I have warned months ago about this.
6) NBT increased to 4% from 2%

Thank God there is no Turnover tax due to lots of protests. I hope this budget would bring some positive energy to the market. Banking sector will go down and might affect the index but other sectors should do well.

The challenge is to put these development ideas into action.

http://www.lankabusinessonline.com/live-budget-2016-coverage-proposals-and-full-speech/

But you told us throughout 24 hours that ,more and more super gain taxes, revenge and punish investors stories bla bla.. few days back ne! You told us to stay away from blue chips ne. What if somebody has sold his portfolio by reading your posts. Now it's obious that massive reduction of corporate tax , abolishing VAT for retail business Definetely gonna do a big positive impact. At least now you should avoid telling nonsense reapetedly and talk with some sense for the sake of many forum uses  specially new comers.

HAL my friend, Why are you angry on me? I'm not biased towards any political party. All I told was that I will buy new shares after the budget. Now we know exactly what to buy and what not to buy.

I sold my short term holdings such as BFL, TAFL, GRAN with good profit due to market sentiment and EPF selling. I was recommending TJL and REXP some time back. Both have appreciated over 40%. Still you will see price appreciation in these counters as export companies benefit from rupee depreciation and positive government policies. When I told sometime back avoid blue chips that also happened. COMB declined from 170 to 150, HNB 228 to 217, JKH too went down to 168 and bounced back.

Now we need to look at the market with fresh mind sets. The same RK who scolded all the blue chips now reduced the corporate tax. The government also knows that the economy is at a mess and they can't punish the private sector more.

Now we focus on some good shares to make some money. There is absolutely no point in accusing anyone. Everyone has a right to express their view.

Enjoy the market HAL. Share your ideas. What shares would outperform in the coming quarter?

[කිත්සිරි ද සිල්වාTop contributor]

VEHICLE IMPORTERS’ UNION PREDICTS SIGNIFICANT INCREASE IN VEHICLE PRICES

The Vehicle Importers’ Union has said that vehicle prices are due to increase significantly from the 2016 Budget.

Its Chairman Indika Sampath Merenchige speaking to NewsRadio said that a price hike in all vehicles including hybrids can be anticipated.

Listen to this guy

[balapasTop contributor]

Apart from that vehicle permits have been abolished. There was a big informal market for these. People used to sell their permits to UML, Stafford, Softlogic etc. According to Ravi 30bn annual loss to SL because of this.

Therefore reduction in imports while increase in prices can be observed. Vehicle prices specially the hybrid ones went up couple of months ago but again reduced due to changes in custom valuations. A real roller coaster story for this market till the govt finalize what they want to do.

[කිත්සිරි ද සිල්වාTop contributor]

Car permits have been abused and abolishing it was a good move according to my thinking.
Now the government must find a way to have our own auto industry here and save billions of foreign currency going out.
What happened to the talk of VW plant?

[HAL9000Top contributor]

Apart from that vehicle permits have been abolished. There was a big informal market for these. People used to sell their permits to UML, Stafford, Softlogic etc. According to Ravi 30bn annual loss to SL because of this.

Therefore reduction in imports while increase in prices can be observed. Vehicle prices specially the hybrid ones went up couple of months ago but again reduced due to changes in custom valuations. A real roller coaster story for this market till the govt finalize what they want to do.    

Government wants to limit vehicle imports due to foreign currency balance and heavy traffic congestion at the same time they need the revenue from the custom duty so that still searching the correct balance between the two.

Have to agree with the vehicle permit issue. It has been massively misused. 3rd parties have got massive undue profits while paying the public servant a scanty amount.
At the same time government have to offer an alternative solution for professional otherwise they cannot be kept in the government sector with these scanty salaries. I know one of my friend is a government doctor and he got only less than 100,000 monthly and later he got a job in Singapore with 7-8 times higher salary per month with better working conditions, things are same for other government servant categories like engineers, accountants etc as well.

[Market loverTop contributor]

Just catching up with the budget as I was occupied with various things.

This is totally a different budget from the interim budget. An investor friendly and people's friendly budget. What a change from RK? Devil is not so black as he is painted. All I wanted to see is our country progressing and people progressing.

I was browsing the budget speech key notes and highlighted some important points. Some +++++
1) No land tax for foreigners - Must be favourable to JKH as their new project waterfront would benefit from this. OSEA also would benefit
2) Revised corporate taxes of 15% (Except banks, Finance companies, insurance, betting, gaming, liquor and tobacco. These are taxed at 30%). We can expect better dividends from the companies in future.
3) Tons of positive measures for export companies
4) Finance companies will have massive benefits after 1 June 2016. The banks will not be allowed to carry out leasing and a limitation for pawning (5% of total lending).
5) A lot for the agriculture sector
6) Share transaction levy abolished

Some negatives
1) Reduction of exemption limit for VAT to 12 million a year. Many small businesses will get caught
2) Banks are affected in many ways. No lease after 1 June 2016, Compulsory loans to agri sector
3) Vehicle owners are affected
4) 2% increase in corporate tax for some businesses
5) Tile sector removed from BOI negative list. Not sure how this would affect LWL and RCL. I have warned months ago about this.
6) NBT increased to 4% from 2%

Thank God there is no Turnover tax due to lots of protests. I hope this budget would bring some positive energy to the market. Banking sector will go down and might affect the index but other sectors should do well.

The challenge is to put these development ideas into action.

http://www.lankabusinessonline.com/live-budget-2016-coverage-proposals-and-full-speech/

But you told us throughout 24 hours that ,more and more super gain taxes, revenge and punish investors stories bla bla.. few days back ne! You told us to stay away from blue chips ne. What if somebody has sold his portfolio by reading your posts. Now it's obious that massive reduction of corporate tax , abolishing VAT for retail business Definetely gonna do a big positive impact. At least now you should avoid telling nonsense reapetedly and talk with some sense for the sake of many forum uses  specially new comers.

HAL my friend, Why are you angry on me? I'm not biased towards any political party. All I told was that I will buy new shares after the budget. Now we know exactly what to buy and what not to buy.

I sold my short term holdings such as BFL,  TAFL, GRAN with good profit due to market sentiment and EPF selling. I was recommending TJL and REXP some time back. Both have appreciated over 40%. Still you will see price appreciation in these counters as export companies benefit from rupee depreciation and positive government policies. When I told sometime back avoid blue chips that also happened. COMB declined from 170 to 150, HNB 228 to 217, JKH too went down to 168 and bounced back.

Now we need to look at the market with fresh mind sets. The same RK who scolded all the blue chips now reduced the corporate tax. The government also knows that the economy is at a mess and they can't punish the private sector more.

Now we focus on some good shares to make some money. There is absolutely no point in accusing anyone. Everyone has a right to express their view.

Enjoy the market HAL. Share your ideas. What shares would outperform in the coming quarter?

Sounds like a pansaley hamuduruwo now as if u havent done anything

Dhannawanam oyawa ape Katina Perahera pansaley bana kiyanda ekkang yanawa

[Deegoda Gamage]

I  think the govt has done maximum possible

Private sector should know how to utilize facilities given by the budget

Budget allocation for rural infra structure Development is not sufficient


Construction of small bridges and rural rods

in remote  villages is very essential


I am D.G Dayaratne of SL Equity forum'.

That forum presently manage by ...........................

[HAL9000Top contributor]

http://www.adaderana.lk/news/33152/govt-allocated-largest-fund-for-education-president

Unlike some megalo manias of construction of 4 lane high ways and night markets for Hambanthota where people demands drinking water and facilitate farming, it's good to see the priority this gov has given to human resource development . Human is the only resource we have to offer in order to catch up the development lag as we all know we do not have natural resources like Oil, Gas, Gold etc.
Previously we relied on exporting our people for middle east slavery and earn our bucks, and only industry develop after independance is appearal again our contribtion mainly on cheap laber. This could be a start of real long term investment on human capital development.

[Future123Active Member]

Just catching up with the budget as I was occupied with various things.

This is totally a different budget from the interim budget. An investor friendly and people's friendly budget. What a change from RK? Devil is not so black as he is painted. All I wanted to see is our country progressing and people progressing.

I was browsing the budget speech key notes and highlighted some important points. Some +++++
1) No land tax for foreigners - Must be favourable to JKH as their new project waterfront would benefit from this. OSEA also would benefit
2) Revised corporate taxes of 15% (Except banks, Finance companies, insurance, betting, gaming, liquor and tobacco. These are taxed at 30%). We can expect better dividends from the companies in future.
3) Tons of positive measures for export companies
4) Finance companies will have massive benefits after 1 June 2016. The banks will not be allowed to carry out leasing and a limitation for pawning (5% of total lending).
5) A lot for the agriculture sector
6) Share transaction levy abolished

Some negatives
1) Reduction of exemption limit for VAT to 12 million a year. Many small businesses will get caught
2) Banks are affected in many ways. No lease after 1 June 2016, Compulsory loans to agri sector
3) Vehicle owners are affected
4) 2% increase in corporate tax for some businesses
5) Tile sector removed from BOI negative list. Not sure how this would affect LWL and RCL. I have warned months ago about this.
6) NBT increased to 4% from 2%

Thank God there is no Turnover tax due to lots of protests. I hope this budget would bring some positive energy to the market. Banking sector will go down and might affect the index but other sectors should do well.

The challenge is to put these development ideas into action.

http://www.lankabusinessonline.com/live-budget-2016-coverage-proposals-and-full-speech/

But you told us throughout 24 hours that ,more and more super gain taxes, revenge and punish investors stories bla bla.. few days back ne! You told us to stay away from blue chips ne. What if somebody has sold his portfolio by reading your posts. Now it's obious that massive reduction of corporate tax , abolishing VAT for retail business Definetely gonna do a big positive impact. At least now you should avoid telling nonsense reapetedly and talk with some sense for the sake of many forum uses  specially new comers.

HAL my friend, Why are you angry on me? I'm not biased towards any political party. All I told was that I will buy new shares after the budget. Now we know exactly what to buy and what not to buy.

I sold my short term holdings such as BFL,  TAFL, GRAN with good profit due to market sentiment and EPF selling. I was recommending TJL and REXP some time back. Both have appreciated over 40%. Still you will see price appreciation in these counters as export companies benefit from rupee depreciation and positive government policies. When I told sometime back avoid blue chips that also happened. COMB declined from 170 to 150, HNB 228 to 217, JKH too went down to 168 and bounced back.

Now we need to look at the market with fresh mind sets. The same RK who scolded all the blue chips now reduced the corporate tax. The government also knows that the economy is at a mess and they can't punish the private sector more.

Now we focus on some good shares to make some money. There is absolutely no point in accusing anyone. Everyone has a right to express their view.

Enjoy the market HAL. Share your ideas. What shares would outperform in the coming quarter?

Sounds like a pansaley hamuduruwo now as if u havent done anything

Dhannawanam oyawa ape Katina Perahera pansaley bana kiyanda ekkang yanawa

Marketlover, So what are your predictions about the market? What shares you think would outperform in the medium term? Why you never share your ideas about shares and investment with others? Share your knowledge for the benefit of everyone? I always share my idea and see 90% of my predictions had really happened.

[කිත්සිරි ද සිල්වාTop contributor]

[smallvilleTop contributor]

Kith - can u put the source?

Last I know was they revising tax tables.. So have to check on this increase.

[puliyanamTop contributor]

CT CLSA - Sri Lanka National Budget 2016 - 22 November 2015
Sri Lanka - Third Wave of Reforms

The National Budget Proposals 2016 can be termed as a reformist agenda. Being used to budget speeches that were extremely populist, or included implausible / regressive proposals, the proposals presented on 20 November 2015, though falling short of being ‘revolutionary’ as promised in the lead up, look to adequately address the short term risks in the economy, whilst setting Sri Lanka up for the long run

The proposals look to instill confidence amongst the investment community. Overall, the proposals appear to have taken note of comments made by a range of stakeholders, whilst comprising a more medium to long term planning perspective

Whilst state intervention is likely to remain, or return, in some industries, there seems to be better distinction being made between essential and non-essential involvement

The GoSL forecasts the fiscal deficit for 2016E to decline to 5.9% of GDP (Rs.740bn), against a deficit of 6.0% (Rs.675bn) targeted for 2015E (surpassing previous target of 4.4%, or Rs.499bn)

Total revenue and grants to rise at a staggering +39% YoY to Rs.2,047bn in 2016E. GoSL estimates total expenditure to increase +29% YoY to Rs.2,787bn in 2016E, with Public Investment to rise +68% YoY to Rs.868bn

It should be noted that the proposals laid out in the budget are not officially finalized by the GoSL, with information also limited in some instances, until the release of gazettes, and thereby the details on some of the proposals could be altered in the weeks ahead