Super Gain Tax Bill this Week

http://www.sundaytimes.lk/150927/news/seven-bills-to-raise-revenue-through-mega-taxes-165901.html


Seven bills to raise revenue through mega taxes
By Chandani Kirinde
View(s): 2038

Finance Minister Ravi Karunanayaka has reintroduced the Finance Act (Amendment) Bill which seeks to impose the Mansion Tax and Migration Tax and the Super Gains Tax on a company or individual whose profit before tax exceeds Rs. 2,000 million.
This and six other bills aimed at raising state revenue were presented to Parliament by the Finance Minister this week amid opposition protests.

The bill was earlier presented in parliament consequent to the interim budget in January. The amendment to the Finance Act provides for the imposition of Bars and Taverns Levy, Casino Industry Levy, Super Gains Tax, Mobile Telephone Operator Levy, Direct-to-Home Satellite Services Levy, Satellite Location Levy, Dedicated Sports Channel Levy, Mansion Tax, Migrating Tax and the Motor Vehicles Importer Licence Fee.

The Direct-to-Home Satellite service levy of Rs 1,000 milllion will be imposed on every person in the business of providing Direct-to-Home services through satellite having more than 50,000 subscribers in Sri Lanka. The Migrating Tax will be charged from any citizen of Sri Lanka who permanently leaves Sri Lanka, at the rate of 20% of the foreign exchange released to be taken out of the country by such citizens.

This tax will be collected by the Controller of Exchange at the point of outward remittance of foreign currency, in accordance with the provisions of the directions and regulations made under the Exchange Control Act, and the money will be remitted to the Consolidated Fund within 15 days from the date of collection.

The Mansion tax will be imposed on every owner of a mansion constructed on or after April 1, 2000, at the rate of Rs 1 million per year, in addition to the rates and taxes charged and levied by any local authority, and shall be paid in four equal installments.

A Mansion has been described as “any building constructed on or after April 1, 2000, for residential purposes, of which the floor area is not less than 10,000 square feet as per the building plan approved by the local authority of the local authority area wherein such building is situated, or the value of such building, as at the first day of April of any relevant year, is not less than Rs 150 million, as determined by the Government Chief Valuer, or by an officer authorized by him, after making any adjustment as may be prescribed, and in the case of a condominium property , a condominium unit of such property shall be deemed to be a building for the purposes of part.

The other Bills presented by the Minister were the Inland Revenue (Amendment) Bill, Value Added Tax (Amendment) Bill , Nation Building Tax (Amendment) Bill, Economic Service Charge (Amendment) Bill, Telecommunication Levy (Amendment) Bill and the Betting and Gaming Levy (Amendment)Bill.

I read this news too today. But I think market has already reacted to this news item.

How will mansion tax affect JKH's cinnamon life?

1) Thats a business. So it will be taxed different to JKH if you are talking JKH side.

2) If you are talking about any future apartment owners of Cinnamon life,
are there any that fit the size to be mansions? ( also are they apartments are mansions?)

Future123 wrote:How will mansion tax affect JKH's cinnamon life?

"In my fathers house there are many mansions."
God will frown on RK.

last hope of Super September shattered by RK

PLC,DIAL,JKH... comming down, F*** RK

Yes this is getting a bit annoying. I mean how these guys have no concern or done anything to uplift stock market.

Every country including China, India, USA Japan, is active or concerned about their stock market.

Am wondering what ours have done to boost it? Expect some talk but of course nothing practical so far.

yellow knife wrote:last hope of Super September shattered by RK

If they can't boost it , atleast I expect them to not harm it.

When shares like BLI get pushed to unresonable high , it does not show good on them also.

slstock wrote:Yes this is getting a bit annoying. I mean how these guys have no concern or done anything to uplift stock market.

Every country including China, India, USA Japan, is active or concerned about their stock market.

Am wondering what ours have done to boost it? Expect some talk but of course nothing practical so far.

yellow knife wrote:last hope of Super September shattered by RK

slstock wrote:Yes this is getting a bit annoying.  I mean how these guys have no concern or done anything to uplift stock market.

Every country  including China, India, USA Japan,  is active or concerned about their stock market.

Am wondering what ours have done to boost it?  Expect some talk but of course nothing practical  so far.

yellow knife wrote:last hope of Super September shattered by RK

Sir, I knew all these things are going to happen and that's why I didn't like these NATO guys. The economy is at a jeopardy now. Rupee is taking a hard hit. No investors turning towards SL.

RW and RK showing they are inexperienced and short sighted.

So better go for their strength. I don't touch JKH and bigger companies now. Ranil and Ravi really hate JKH.

Now it's too late. We have to live with this for another 5 years. I hope we will see more stars in November budget as well.

When Last week ended,

1. Market was very silent & 7100 was strongly supported.
2. JKH volatility also decreased.
3. Lot of shares settled in some price ranges.
4. CB rate unchanged.

This week start with more favorable to the market, But in morning this bloody new again killed the momentum.

mymoney wrote:When Last week ended,

1. Market was very silent & 7100 was strongly supported.
2. JKH volatility also decreased.
3. Lot of shares settled in some price ranges.
4. CB rate unchanged.

This week start with more favorable to the market, But in morning this bloody new again killed the momentum.

May be RK is waiting for buy at low.

Personally I was clearing half of my portfolio for a personal reason before the presidential election.
And cleared the entire portfolio (although it was not planned before) after next 2-3 weeks of the presidential election.
I didn't do any trade or an investment for last few months and will not think there will be a time do such in the immediate future.
I may be wrong but waiting with cash in hand is better till get a clear picture.

No one knows where to go.. and there is no one to show where to go..

Found another scapegoat.

http://www.ft.lk/article/476199/Fresh-concerns-as-Super-Gains-Tax-resurfaces-via-new-Bill

This was why I had been telling that the UNP never thought that they will get another shot to govern the country.
They have never been prepared.
Now it is bull in the china shop.

When ever market dips I used to energize brave hearts...

http://forum.lankaninvestor.com/t4491-time-for-brave-hearts?highlight=brave+hearts

but this time I am silent...

කිත්සිරි ද සිල්වා wrote:This was why I had been telling that the UNP never thought that they will get another shot to govern the country.
They have never been prepared.
Now it is bull in the china shop.

Paw ne Fat Ravi has to fund his Koththamalli subsidy and public servant handouts some way.
Let's see if Fat Ponil can balance Fat Ravi by getting the powerful GSP+

See..., Market doesn't like to fall more...but he is urged to fall more...

any idea about this update?

following was mentioned in the LBO as the counters in the criteria of SG tax.. is this all??

Counters exposed to Super gains tax with annual earnings over LKR2bn in 2013/14:

Access Engi LKR2,996mn, SPEN LKR4,509mn, Bukit Darah LKR7,873mn, Carson LKR7,879mn, Ceylon Tobacco LKR9,263mn, Chevron LKR2,532mn, Commercial Bank LKR10,573mn, DFCC bank LKR3,102mn, Dialog LKR5,194mn, Distilleries LKR6,578mn, HNB LKR7,010mn, JKH LKR13,011mn, LOLC LKR3,107, NDB LKR2,712mn, Nestle LKR3,348, Peoples Leasing LKR3,463mn, Sampath Bank LKR3,638mn, SLT LKR5,337mn says Yohan Samarakkody, head of research at SC Securities

(Oct 15, 2015 10.53 a.m)



It has been a month since the Super Gains Tax was again taken up in the Parliament (22nd September). There is a buzz that the Super Gains Tax will be taken up for debate next week at Parliament gathering. Certainly we can expect a share price reaction in counters exposed for the Super Gains tax, says Yohan Samarakkody, head of research at SC Securities (Oct 15, 2015 10.40 a.m)

http://www.lankabusinessonline.com/sri-lanka-market-updates/

The list is much lengthier than that. I can remember LFIN, LIOC and PARQ also made provisions due to the holding company effect.

The government should either implement or don't implement SGT as soon as possible. A situation like this really pushing the investors away from SL.

The government's behavior is very contradicting. They said they are going to create 1 million jobs in 5 years but their policies are anti investment friendly.

They said they are going to bring down cost of living but rupee is depreciating very fast pushing the prices of essentials up.

They said they will make a car affordable for every middle class family but now middle class can't even dream of a Japanese car.

They said they are very much concerned about environment but imposing very high taxes on Hybrid vehicles.

They are not doing what they say.

As investors we keep our selves away from all blue chips and invest in medium scale growing companies. Ranil and Ravi are very angry on JKH and bigger hotels. So it's better to avoid these companies.

Export and food sectors are the best in this environment.

Another reason why this should be concluded soon. Otherwise Future 123 has to repeatedly write posts on super gains tax, RK, RW, Arjun Mahendran angry with business, how business friendly the previous government and how unfriendly the present one  bla bla...... stories

Good news guys. Just watched on Ada Derana news. Dinesh Gunawardena MP saying that any tax proposed in the earlier parliament which was not approved by the earlier parliament has no validity. Similarly if taxes were levied without parliament approval it should be paid back.

As per Dinesh, the new parliament has no power to approve the finance bills proposed by the earlier parliament.

Thanks Dinesh for standing up for the investors. Happy that I voted for you. The other 2 I voted also would defend all our investors, Bandula and Wimal.

This is why we need powerful opposition.

Don't worry about Super Gain Tax now. The opposition would fight for investors' rights. Focus on good shares and don't buy blue chips especially JKH. There will be evil taxes against blue chips in November budget.

For the time being it's a relief for us until November 20.

HAL9000 wrote:Another reason why  this should be concluded soon. Otherwise Future 123 has to repeatedly write posts on super gains tax, RK, RW, Arjun Mahendran angry with business, how business friendly the previous government and how unfriendly the present one  bla bla...... stories

There's no point in talking previous regime now. Now you have a got a mighty government with able & clean people which you also backed openly.
Now you better post what they are doing fine for the investors & CSE.

Leon wrote:

HAL9000 wrote:Another reason why  this should be concluded soon. Otherwise Future 123 has to repeatedly write posts on super gains tax, RK, RW, Arjun Mahendran angry with business, how business friendly the previous government and how unfriendly the present one  bla bla...... stories

There's no point in talking previous regime now. Now you have a got a mighty government with able & clean people which you also backed openly.
Now you better post what they are doing fine for the investors & CSE.