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I am trying to study the budget as per country development and see how it affects CSE .
Right now I can say there are multiple sides to some of the moves taken.
But to start the conversation I see
Major benefits as below
1) " Proposals seek to grant a concession by way of a 10% reduction of the corporate tax rate on tax profits from the sale of manufactured products in the local market, by any local manufacturer who has commenced the business during the 1970’s and is engaged in imports substitution."
Can someone find companies that fit above ?
2) 50% reduction in the tax rate on profits from any manufacturing business (other than liquor or tobacco) for the period of 5 years (up to a maximum of Rs.500mn), if the following conditions are satisfied;
- Business is expanded to areas outside Western Province.
- Investment in depreciable fixed assets more than Rs.300mn.
- Investment is made within the period 1 April 2015 to 1 April 2017
- Presently liable to tax at 28%
3) Seems large companies will get 15% reduction in Electricity costs. That will be a big incentive.
Some/Minor benefits
4) Bank / Fin companies will benefit with VAT reduction of 1%. ( But they have to dedicate 2%extra of employee salary to EPF.)
5) The poultry production industry to be provided export incentives for chicken and eggs
6) It has been proposed to reduce import taxes of packaging materials required for exports without affecting local industries that manufacture such materials.
Maybe Uni Dil ( LWL) , Care will benefit?
7) Some Motor companies
No change:
8 ) Tobacco and Alcohol?
Please add and discuss. If you find a company that will directly benefit please mention.
My aim here is to kick start,
Use References :
https://forum.lankaninvestor.com/t2428-comprehensive-details-on-2015-budget-pwc ( thx Saashi)
https://forum.lankaninvestor.com/t2429-kpmg-budget-analysis-2015 ( thx reds)
Vague areas of budget:
There are some controversial and vague areas of budget. Please do discuss them also.
Ex: Pensioner 12% interest, Rubber min limit at Rs 300 per Kg
Right now I can say there are multiple sides to some of the moves taken.
But to start the conversation I see
Major benefits as below
1) " Proposals seek to grant a concession by way of a 10% reduction of the corporate tax rate on tax profits from the sale of manufactured products in the local market, by any local manufacturer who has commenced the business during the 1970’s and is engaged in imports substitution."
Can someone find companies that fit above ?
2) 50% reduction in the tax rate on profits from any manufacturing business (other than liquor or tobacco) for the period of 5 years (up to a maximum of Rs.500mn), if the following conditions are satisfied;
- Business is expanded to areas outside Western Province.
- Investment in depreciable fixed assets more than Rs.300mn.
- Investment is made within the period 1 April 2015 to 1 April 2017
- Presently liable to tax at 28%
3) Seems large companies will get 15% reduction in Electricity costs. That will be a big incentive.
Some/Minor benefits
4) Bank / Fin companies will benefit with VAT reduction of 1%. ( But they have to dedicate 2%extra of employee salary to EPF.)
5) The poultry production industry to be provided export incentives for chicken and eggs
6) It has been proposed to reduce import taxes of packaging materials required for exports without affecting local industries that manufacture such materials.
Maybe Uni Dil ( LWL) , Care will benefit?
7) Some Motor companies
No change:
8 ) Tobacco and Alcohol?
Please add and discuss. If you find a company that will directly benefit please mention.
My aim here is to kick start,
Use References :
https://forum.lankaninvestor.com/t2428-comprehensive-details-on-2015-budget-pwc ( thx Saashi)
https://forum.lankaninvestor.com/t2429-kpmg-budget-analysis-2015 ( thx reds)
Vague areas of budget:
There are some controversial and vague areas of budget. Please do discuss them also.
Ex: Pensioner 12% interest, Rubber min limit at Rs 300 per Kg
Last edited by slstock on Sat Oct 25, 2014 1:23 pm; edited 2 times in total
(just a joke 
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