The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» "පියසේනට දැං සනීපයි..."
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyToday at 9:22 pm by serene

» Thread for News on CSE and SL Economy
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyToday at 7:18 pm by NIRMALSG

» Dividend Announcement
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyToday at 9:56 am by Rana

» විද්‍යාව මිස්ගේ පාඩම...
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyToday at 7:27 am by sanjulanka

» Trading Journal
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyYesterday at 11:50 pm by pathfinder

» වචන නම් අපේ ඒත් තනුව ?????????
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyYesterday at 8:08 pm by Rana

» Access Engineering AEL Technical Analysis
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyMon Jul 15, 2019 3:07 pm by NIRMALSG

» Tourism sector
Expert says debt repayment levy ends up 0.25% on financial VAT EmptySun Jul 14, 2019 8:57 am by NIRMALSG

» Cricket, meet Capitalism
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyFri Jul 12, 2019 1:24 pm by කිත්සිරි ද සිල්වා

» LFIN - LB Finance
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyThu Jul 11, 2019 11:27 am by Ethical Trader

» අපි නොදන්න චෙස් කිව්වලු !
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyTue Jul 09, 2019 6:25 pm by serene

» Stock Market to stay Bullish
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyMon Jul 08, 2019 7:51 am by කිත්සිරි ද සිල්වා

» Is an emoji a word or a gesture?
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyMon Jul 08, 2019 7:46 am by කිත්සිරි ද සිල්වා

»  Rajgama Heroes !
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyMon Jul 08, 2019 7:39 am by කිත්සිරි ද සිල්වා

» HHL.N0000 ( Hemas Holdings PLC)
Expert says debt repayment levy ends up 0.25% on financial VAT EmptySun Jul 07, 2019 12:25 pm by dhanurrox

» Checkmate, meatbags !
Expert says debt repayment levy ends up 0.25% on financial VAT EmptySun Jul 07, 2019 7:20 am by spw19721

» GLAS.N0000 (PIRAMAL GLASS CEYLON PLC)
Expert says debt repayment levy ends up 0.25% on financial VAT EmptySat Jul 06, 2019 8:13 am by කිත්සිරි ද සිල්වා

» සංචාරක පැමිණීම ක්‍රමයෙන් යහපත් වන ලකුණු
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyFri Jul 05, 2019 6:11 pm by serene

» SAMP.N0000 (SAMPATH BANK PLC)
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyThu Jul 04, 2019 8:55 am by serene

» Easter Sunday Attack and Sri Lanka
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyThu Jul 04, 2019 8:46 am by කිත්සිරි ද සිල්වා

» අනං මනං! #/+?.<>
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyWed Jul 03, 2019 10:07 pm by ruwan326

» First capital holdings
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyWed Jul 03, 2019 1:37 pm by serene

» What to Analyse
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyMon Jul 01, 2019 11:33 am by serene

» අනිසි ලෙස කොටස් මිල හැසිර වූ ආයෝජකයින් දෙදෙනෙකුට සුරැකුම්පත් කොමිසමෙන් නඩු
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyFri Jun 28, 2019 2:11 pm by Ethical Trader

» අද වෙන්දේසියේ දී බිල්පත් පොළිය පහළට.
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyFri Jun 28, 2019 7:46 am by serene

» AAIC.N0000
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyFri Jun 28, 2019 7:33 am by serene

» SERV - The Kingsbury
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyThu Jun 27, 2019 8:27 pm by ruwan326

» TPL.N0000 (TALAWAKALE PLANTATIONS )
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyWed Jun 26, 2019 2:22 pm by nuwanmja

» Life After Google
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyTue Jun 25, 2019 5:28 pm by කිත්සිරි ද සිල්වා

» S&P ශ්‍රී ලංකා 20 දර්ශකයේ වෙනසක්. CTC, NTB, රිචඩ් පීරිස් සහ ටෝක්යෝ සිමෙන්ති ඉවතට
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyTue Jun 25, 2019 6:37 am by nihal123

» Future of Tea Industry
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyMon Jun 24, 2019 6:54 pm by hammurabi

» Cricket !
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyMon Jun 24, 2019 2:22 pm by කිත්සිරි ද සිල්වා

» DIPD.N0000 (Dipped Products)
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyMon Jun 24, 2019 11:40 am by Ethical Trader

» DOCK.N0000 (COLOMBO DOCKYARD PLC)
Expert says debt repayment levy ends up 0.25% on financial VAT EmptySun Jun 23, 2019 9:14 pm by hammurabi

» මිල සූත්‍රය වැරදුණාද, වැරැද්දුවාද?
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyFri Jun 21, 2019 5:25 pm by Ethical Trader

» Happy Father's Day !
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyMon Jun 17, 2019 8:58 pm by spw19721

» DPL.N0000 (Dankotuwa Porcelain PLC)
Expert says debt repayment levy ends up 0.25% on financial VAT EmptySun Jun 16, 2019 7:12 am by NIRMALSG

» Re: Financial reports Q1-2019
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyFri Jun 14, 2019 8:57 pm by dhanurrox

» SEYB.N0000 ( SEYLAN BANK PLC )
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyThu Jun 13, 2019 8:11 pm by ruwan326

» NTB.N0000 (NATIONS TRUST BANK PLC)
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyThu Jun 13, 2019 8:08 pm by ruwan326

» PABC.N0000 (Pan Asia Banking Corporation PLC)
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyThu Jun 13, 2019 8:06 pm by ruwan326

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyThu Jun 13, 2019 7:58 pm by ruwan326

» HNB.N0000 ( Hatton National Bank PLC)
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyThu Jun 13, 2019 7:57 pm by ruwan326

» HDFC.N0000 (HOUSING DEVELOPMENT FINANCE CORPORATION BANK OF SRI LANKA)
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyThu Jun 13, 2019 7:48 pm by ruwan326

» DFCC.N0000 ( DFCC BANK PLC )
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyThu Jun 13, 2019 7:45 pm by ruwan326

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyThu Jun 13, 2019 7:43 pm by ruwan326

» Should CSE be like this? Whose FAULT is it?
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyWed Jun 12, 2019 5:21 pm by Yin-Yang

» CCS.N0000 ( Ceylon Cold Stores)
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyTue Jun 11, 2019 9:15 pm by ruwan326

» MCPL.N0000
Expert says debt repayment levy ends up 0.25% on financial VAT EmptySun Jun 09, 2019 12:15 pm by ruwan326

» LOFC Initiating Coverage - STRONG BUY - 29 03 17 - FC Research
Expert says debt repayment levy ends up 0.25% on financial VAT EmptyFri Jun 07, 2019 5:42 am by stockback

July 2019
SunMonTueWedThuFriSat
 123456
78910111213
14151617181920
21222324252627
28293031   

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Expert says debt repayment levy ends up 0.25% on financial VAT

Go down

Expert says debt repayment levy ends up 0.25% on financial VAT Empty Expert says debt repayment levy ends up 0.25% on financial VAT

Post by TraderCSE on Tue Mar 27, 2018 4:46 pm

http://www.ft.lk/top-story/Expert-says-debt-repayment-levy-ends-up-0-25--on-financial-VAT/26-652113

• Stresses disconnection between original levy proposal and current form as normal bank levy
• Says banks will only comply with new IR Act rates from 1 April, first three months will be paid according to old Act
• Given policy uncertainties, market speculates implementation of IR Act will be put off
• Bank exemptions, overseas income, bank employees concessionary interest rates will be no more


By Charumini de Silva

The much-discussed debt repayment levy proposed in the 2018 Budget is now ending up as 0.25% of the financial VAT, which is slated to come into effect from 1 April, a veteran in the industry confirmed yesterday (26 March).

“The Finance Ministry have now decided that the levy will be based on the percentage of the financial VAT, which is 0.25%,” KPMG Sri Lanka Managing Partner Reyaz Mihular said yesterday, at a seminar organised by the Ceylon Chamber of Commerce on overcoming the regulatory and compliance challenges in the banking sector.

According to the 2018 Budget, a 0.2% levy will be charged on total cash transactions, the second largest new revenue measure in the Budget, aiming to collect Rs. 20 billion during the year. It was specified that the levy should be paid by the financial institutions, without passing on the burden on to their customers.

He said the transaction levy (according to 2017 Budget) was meant to be introduced to discourage cash transactions, where banks cannot pass on the levy to their customers and it must be absorbed by financial institutions.

“The Budget spoke of putting a levy on cash transactions, and then there was confusion on cash or all transactions. Then the banks found it very difficult in categorising the transactions to apply the levy, and everything was too much of a headache.

However, the rationale that was given was to reduce the cash circulation in the country. There were very lofty ideas that were talked about, but finally now what it is ending up as is 0.25% of the financial VAT,” Mihular stressed.

He stressed that there was a disconnection between what the levy was put forward to do, which was to try and reduce cash circulation, and how it has ended up as a normal levy to the banks.

“So, it is another levy on the bank’s profits,” he emphasised.

The Finance Ministry earlier pointed out that the banking industry understands that the Government had to introduce the levy to address vulnerabilities in the economy for the next three years.

In terms of the new Inland Revenue Act (IR Act), he said the banks will only comply with it for the nine months starting from 1 April.

“Banks functions on the 12-month rule which ends in December. What happens to January to March? So, the banks are asking why they need to compromise according to the new rate, when the new Act comes into effect from 1 April. The compromise is that although it is a little too cumbersome, the banks will pay for the first three months according to the old Act, and the next nine months according to the new Act,” he stated.

Despite the fact that the Inland Revenue Department (IRD) naturally seeks to apply the new Act to all months because it needs higher income, banks being banks do not want to pay for the first three months according to the new Act.

“Banks know what’s good for them,” Mihular quipped.

Given the policy uncertainties in the country, Mihular said there were speculations among professionals in enacting the new Inland Revenue Act from 1 April. “Last week, I was attending a few functions and people were saying it might be put off and anything was possible.”

Highlighting another gloomy area for the banking sector, he noted that seven of the exemptions that the banks traditionally used to enjoy, will now be scrutinised under the new Act.

“The good old days of holding the overseas income, exemptions, parking loans at different places are all gone. Also, the Government will tax the bank employees’ interest rates concessions. People joined banks because of the low interest rates they get to enjoy. But now young ladies and gentlemen from the banking sector, you are going to be taxed on the difference of the concessionary interests and the normal interests. That’s the sad part of it,” he added.

TraderCSE

Posts : 9
Join date : 2015-09-16

Back to top Go down

Expert says debt repayment levy ends up 0.25% on financial VAT Empty Re: Expert says debt repayment levy ends up 0.25% on financial VAT

Post by TraderCSE on Fri Mar 30, 2018 11:45 am

Asia Securities positive on the Banking Sector

Debt repayment levy out, financial VAT increased marginally; we are positive

Local media reports that the debt repayment levy announced last November in the budget for 2018 has been changed. This is to be implemented as a 0.25pp increase of the financial VAT taking it up to 15.25% effective from 1st April 2018.


Our back of the envelope calculations indicate is a 0.7% reduction in our forecast industry net profits. This is a substantial shift from the earlier proposed 0.02% levy on cash transactions which would have led a 12.0% hit on industry earnings.


As such, we are now positive on the Banking sector compared to our previous cautiously optimistic view and expect an expansion in valuations.

TraderCSE

Posts : 9
Join date : 2015-09-16

Back to top Go down

Expert says debt repayment levy ends up 0.25% on financial VAT Empty Re: Expert says debt repayment levy ends up 0.25% on financial VAT

Post by slstock on Fri Mar 30, 2018 1:10 pm

Thank you for the info TraderCSE. Welcome.

_________________
Never listen to anyone including myself without your own study. Only few truly genuine people exist in this world.
Please read : https://forum.lankaninvestor.com/t1548-important-warning-and-message
---------
slstock
slstock
Veteran
Veteran

Posts : 5566
Join date : 2014-06-12

Back to top Go down

Expert says debt repayment levy ends up 0.25% on financial VAT Empty Re: Expert says debt repayment levy ends up 0.25% on financial VAT

Post by TraderCSE on Fri Mar 30, 2018 1:56 pm

slstock wrote:Thank you for the info TraderCSE. Welcome.


It's my pleasure, dear Sir.

TraderCSE

Posts : 9
Join date : 2015-09-16

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum