Budget 2016

Proposes to remove the restrictions of leasing of lands to foreigners, and to consider to removing all restrictions on ownership of identified lands through the alienation act.
– Exchange control act to be repealed and proposes a foreign exchange management bill
– National digital identity platform to be established
– Govt EXIM bank to be listed on CSE
25 billion rupees as capital to setup import and export bank (EXIM) jointly by government and industry. Rs50mn seed capital from government. Will be listed on CSE. Operational from 1st of April 2016.

5:58 - 2 billion USD market expansion expected in the jem and jewellery sector
Exporters urged to remit proceeds to support motherland

15:51 - Tea blending to be liberaralised without impacting the Ceylon Tea brand

CTEA lost fight?

Ship breaking in Hambanthota and Trinco is a terrible mistake.

Let's open two ( more ) Cancer Hospitals nearby as well.

Backstage wrote:Ship breaking in Hambanthota and Trinco is a terrible mistake.

Super gain tax to be removed. “NO such Super Gain Tax in the future

– Foreign contractors must work with local contractors
– Proposal to enhance Multilateral Trade ties with USA, China, Korea, South Africa, Saudi Arabia and Australia and to take necessary steps to strengthen ties with International Trade Agencies.
– Expenditure incurred on Solar power by houses will be a qualified payment for tax
– New tax structure to make a ‘shopping paradise’ on several items that will have lower import duties
– Tiles, clay and sanitary wear to be removed from the BOI negative list
– Public private partnerships for tourism sector training with incentives for companies
– Colombo international financial centre – a specific zone in line with Dubai financial centre in DR Wijewardene MW. Casino center of the previous administration to be converted to Colombo international financial center such as the financial center of Dubai.
– Tourism: We have not promoted Sri Lanka enough in the global arena. Tourism industry faces lack of skilled labor. Accordingly 3,000 students will be trained though public private partnership and 50 percent of the course fee will be born by the government. 100 million rupees would be allocated as a start to train workers through a public private partnership.
– Encourage voluntary mergers of banks. Private sector, now its time to walk the talk
– Lankaputhra bank to be merged with regional bank
– Return of cheques to be considered an offense

"Banks won't be allowed to engage in leasing activities/portfolio from mid next year"

A major impact to the banks.

Backstage wrote:Ship breaking in Hambanthota and Trinco is a terrible mistake.

is it breaking or building??

Significant increase in investments for Education and Health.

Monster wrote:"Banks won't be allowed to engage in leasing activities/portfolio from mid next year"

A major impact to the banks.

But good for leasing companies i guess!

– HDFC and State Mortgage and Investment Bank to be merged to create National Housing Bank
– Lankaputra bank to be merged with Regional Development Bank to create Lanka Enterprise Bank
– Creating a savings culture, with banking accounts for children
– Sri Lanka Savings Bank to be merged with National Savings Bank (Divinaguma Bank to be merged with National Savings Bank)
– Foreign holding limit of Government Securities reduced from 12.5 percent to 10 percent
– Banks have to cease leasing activities from mid next year
– Withholding tax to be withdrawn from 2016 for loan securities
– Provisions to boost school infrastructure
– Import duties to be removed on caravans, yachts, mini boats
– Rs3,000 million to setup a new campus named ‘Mahapola University’ at Malabe with IT, Business Management
– Interest free loans for university students to purchase laptops. Rs 300 million for this purpose.
– 1,000 Kidney dialysis centres to be set up.
– Stamp duty on credit card for local purchases removed, 2.5 percent for foreign purchases
– Every student to complete advance level education or receive vocational training after ordinary level education to be made compulsory.
– 300 million rupees will be allocated to implement Free Wi-Fi zones at universities
– State owned enterprises will not be privatized

godswen wrote:

Monster wrote:"Banks won't be allowed to engage in leasing activities/portfolio from mid next year"

A major impact to the banks.

But good for leasing companies i guess!

Yes. Major leasing companies such as PLC, CFIN, LOFC, LFIN, VFIN etc.. will be benefited.

"VVIP Tax payers to get a chance to meet President & Prime Minister"

When can I meet the President and the Prime Minister?

Restructuring corporate tax to two rate band of 30% and 15%

We need to see the nett impact as many other changes were also mentioned

Yes, it will take a few days to fully digest the whole thing and then only people will be able to pass judgements more realistically.

sashimaal wrote:Corporate tax reduced from 28% to 15%
We need to see the nett impact as many other changes were also mentioned

Monster wrote:"Banks won't be allowed to engage in leasing activities/portfolio from mid next year"

A major impact to the banks.

Should make them more efficient? in the long run.

Where are the taxes increased mainly?

Heard STL (and WHT?) gone

http://www.dailymirror.lk/budget/96267

Monster wrote:"VVIP Tax payers to get a chance to meet President & Prime Minister"

When can I meet the President and the Prime Minister?

Ayyo then can us PAYE tax payers meet ministers like the Hiruni types. We don't need such hifi things like meeting Siripala and Ponil we'll settle for Hiruni.

jiggysaurus wrote:

Monster wrote:"VVIP Tax payers to get a chance to meet President & Prime Minister"

When can I meet the President and the Prime Minister?

Ayyo then can us PAYE tax payers meet ministers like the Hiruni types. We don't need such hifi things like meeting Siripala and Ponil we'll settle for Hiruni.

Good idea, but some may still love to have a time with ponil, akil etc..

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/

Future123 wrote: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.