Budget 2016 - Share transaction cost to reduce

HAL9000 wrote:Good, at least for the crying babies babbling 24 hours about revenge investors, punish, angry etc etc

260. Today banks are not keen to lend to certain important sectors of the economy, which has
hampered the growth of these sectors. In this background, I propose that all the banks
should lend at least 10 percent of their loan portfolio to Agriculture, 5 percent to SME and
5 percent to Women and Youth. Given the impact the international gold prices has had on
the local banks specially with large pawning portfolios, I urge the banking sector to limit
their pawning business to a maximum of 5 percent of their loan portfolios. Further, I
encourage Banks to lend to customers who are engaging in stock market activities.

284. Honourable Speaker, this government is committed to creating the enabling environment in
which the stock market can operate efficiently and effectively. A proper regulatory
framework is the key in facilitating growth in the stock market. As such, it is proposed that
Securities and Exchange Act be revised to address the regulatory deficiencies in the market.

287. At the same time, the Share Transaction Levy which charges 0.3 percent from the buyer and
seller on each share transaction will be removed with a view of encouraging activities in the share market so as to boost the sagging movement of share transactions. Further, as an
additional measure, the stamp duty on share certificates will also be removed.

288. Honourable Speaker, volatility in the stock market has resulted in many of the stock brokers
facing significant issues. It would appear that the sustainability of stock brokers themselves
is important in ensuring the long term development of the Capital markets. As such, I
encourage the Stock Brokers to merge to strengthen their capacities and capabilities.

balapas wrote:Important for the forum

" 287 . At the same time, the Share Transaction Levy which charges 0.3 percent from the buyer and seller on each share transaction will be removed with a view of encouraging activities in the share market so as to boost the sagging movement of share transactions. Further, as an additional measure, the stamp duty on share certificates will also be removed. "

Apart from the price reductions best for me was removing the stamp duty on credit cards. Bad thing is two hours ago bought two AC's so may not get the benefits for them. However for foreign purchases it has been increased to 2.5%.

Read the full speech here

http://www.treasury.gov.lk/images/depts/fpd/docs/budgetspeech/2016/bgtspeech2016E.pdf

HUNTER wrote:Good move.

How about reducing the broker commission also by half.