Budget 2016

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

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

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

A major impact to the banks.

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!

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.

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

When can I meet the President and the Prime Minister?

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.

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/