coporate tax to 17.5%

[poor boyActive Member]

corporate tax to 17.5 from 15%. ok . no need to panic. what about cgt on shares? please PM Ranil , please be consistent. pls do not change time to time. not necessary reduce , but please maintain some consistency.

[Future123Active Member]

corporate tax to 17.5 from 15%. ok . no need to panic.  what about cgt on shares? please PM Ranil  , please be consistent. pls do not change time to time. not necessary reduce , but please  maintain some consistency.

Where did you see this - 17.5%?

[Future123Active Member]

Got it.

http://www.economynext.com/Sri_Lanka_to_impose_capital_gains_tax,_raise_other_taxes-3-4441-1.html

corporate tax to 17.5 from 15%. ok . no need to panic.  what about cgt on shares? please PM Ranil  , please be consistent. pls do not change time to time. not necessary reduce , but please  maintain some consistency.

[sashimaalTop contributor]

Current Corp tax is 28%.

Proposed was 15%.

Now it has been brought to 17.5%

Still good for the Businesses .

Agree with poorboy, there has to be consistency without changing all the time.

[poor boyActive Member]

http://www.gossiplankanews.com/2016/03/prime-minister-proposes-15-increase-in.html#more

[slstockVeteran]

17.5% is not bad at all. I even expected 20%  to be okay as stated elsewhere.

But , these sudden decisions and no clear policy is very disturbing I agree.
We don't except such every 3 months.

Hurting CSE like this ( with no clear policy ) is major mistake too.
It's not you and me.

CSE is reflects the whole country to the world .

[poor boyActive Member]

Why didnt he give details about CGT?

[RapaportTop contributor]

Sri Lanka to impose capital gains tax, raise other taxes
Mar 08, 2016 15:15 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT – Sri Lankan Prime Minister Ranil Wickremasinghe said the government will revise the 2016 budget and raise taxes to increase revenue and keep the budget deficit and debt under control.

He announced in parliament that a capital gains tax would be imposed and a uniform value added tax (VAT) would be charged at 15 percent, eliminating the current two-band structure and ending exemptions including to telecoms, private education and health services.

The Nation Building Tax will remains at 2 percent and income tax raised to 17.5 percent from 15 percent.

Wickremasinghe said the government was having talks with the International Monetary Fund on a new tax system to be implemented from 2017.

The capital gains tax would be re-imposed since high income earners had increased their wealth in the past decade with land and stock prices rising.

“We can’t always tax only the poor – we need to tax the rich as well,” he said.

He also announced a proposal to open a budget office in parliament.

Wickremasinghe said the government debt burden was 9.5 trillion rupees and could rise.

The central bank could raise interest rates again after its recent hike maybe before the expected rate hike in the United States.
(Colombo/March08/2016)

[slstockVeteran]

Rapa,

can you post in other thread.

Do you see this has a point I tried to highlight clearly mentioned about Capital tax?

Sri Lanka to impose capital gains tax, raise other taxes
Mar 08, 2016 15:15 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT – Sri Lankan Prime Minister Ranil Wickremasinghe said the government will revise the 2016 budget and raise taxes to increase revenue and keep the budget deficit and debt under control.

He announced in parliament that a capital gains tax would be imposed and a uniform value added tax (VAT) would be charged at 15 percent, eliminating the current two-band structure and ending exemptions including to telecoms, private education and health services.

The Nation Building Tax will remains at 2 percent and income tax raised to 17.5 percent from 15 percent.

Wickremasinghe said the government was having talks with the International Monetary Fund on a new tax system to be implemented from 2017.

The capital gains tax would be re-imposed since high income earners had increased their wealth in the past decade with land and stock prices rising.

“We can’t always tax only the poor – we need to tax the rich as well,” he said.

He also announced a proposal to open a budget office in parliament.

Wickremasinghe said the government debt burden was 9.5 trillion rupees and could rise.

The central bank could raise interest rates again after its recent hike maybe before the expected rate hike in the United States.
(Colombo/March08/2016)

[Future123Active Member]

The corporate tax remains at 28% and only the income tax changed from 15% to 17.5%.

Mar 08, 2016 (LBO) – Sri Lanka’s Prime Minister Ranil Wickremesinghe told Parliament that the government has decided to amend certain budget proposals applicable for this year.

“We hope to amend few budget proposals in line with medium term objectives of the development activities of the government as well as considering the current global scenario and new tax collection system,” Wickremesinghe said.

As per new amendments Statutory Income Tax has been increased from proposed 15 percent to 17.5 percent.

The government has decided to suspend 2016 budget proposals on Corporate and Non Corporate income tax revisions by one year. Existing 2015 rates will apply for these two taxes.

The government has also introduced Capital Gains Tax which has not been implemented in Sri Lanka from 1987.

‘We are imposing capital gains tax taking into consideration the increasing land and stock prices in the past decade,” Wickremesinghe said.

Value Added Tax has been simplified again to a single rate while increasing the rate to 15 percent from the current 11 percent.

2016 budget proposed a duel band VAT system with 8 percent and 12.5 percent.

Tax concessions on telecommunications, private education and private health have also been removed.

However essential goods and electricity has been exempted from VAT. VAT will only be imposed on selected retail and wholesale goods.

Nation building tax which is a tax collected based on the turnover will not be increased to proposed 4 percent from the current 2 percent.

[harieshaTop contributor]

So it seems negativity will be there for 1 or 2 days more.

The signal given for another rate increase is negative. Do we need another rate increase?

As per reports bank lending to private sector has slowed to 43 billion in Dec. 2015 from 91 billion reported in November 2015. So even before announcing the rate increase lending has slowed. Probably in Jan. 2016 and Feb. 2016 lending to private sector may have slowed further.

Other than slowed demand, most performing companies have reduce their debts to record levels by December 2015.

ie : TILE, LWL, RCL, GRAN, TAFL, REXP, RICH, etc.

So, naturally demand for credit will be less in 4th quarter 2015/16 than in previous years. (Normally 4th quarter credit demand is more, but not in this year)

Any how, I also feel market should bounce back before 5800.

But government may like for a subdued market for some time to encourage USD inflows. Unfair by the local investors point of view, but during a BP crisis every dollar is worth like gold. We saw the same reaction in previous BP crisis also, when EPF sold it's stake in JKH to KAZANA.

At current market levels foreign interest is visible.

[First Guy]

Need some clarity here. As usual different news sources are confusing me.