Sri Lanka to impose 'super gains' tax on company profits: Interim Budget 2015

Mr.GP

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Sri Lanka to impose 'super gains' tax on company profits: Interim Budget 2015

Sri Lanka will impose a 25 percent 'super gains” tax on companies earning over two billion rupees in net profit, Finance Minister Ravi Karunanayake said, in presenting the interim budget 2015 to the parliament today

“Any company of which the profit exceeded 2000 million rupees will be charged 25 percent tax off its profit,” Karunanayake said.
"This will be a one-time tax. We want to share excess profits companies are making with the people."

He said there are only 35 to 40 companies which have to pay the newly imposed tax in the island.

Expert from your view !!! Please

Quibit

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All blue chip companies share prices should come down. And market also would be affected Signifcantly. Downwards. Time to buy?

Quibit

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Theoretically blue chip share prices should come down by 25%

san1985

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Quibit wrote:Theoretically blue chip share prices should come down by 25%

It is only a one time tax...so according to which theory it should come down by 25% Qubit?

Pls explain

Do not create panic among investors

worthiness

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If it is one-off tax there cannot be a big impact on share price for a going concern business.

san1985

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worthiness wrote:If it is one-off tax there cannot be a big impact on share price for a going concern business.

Yeah machan

Whoever the new person behind this Qubit profile has a childish thinking...talking nonsense..this is absurd

I had high respect for original Qubit

nimantha80

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Quibit wrote:Theoretically blue chip share prices should come down by 25%

Onna awa.meya piduru gaheth ellenawa.its not 25% incease.

san1985

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nimantha80 wrote:

Quibit wrote:Theoretically blue chip share prices should come down by 25%

Onna awa.meya piduru gaheth ellenawa.its not 25% incease.

Now by a little while...either the entire thread will be deleted or our posts will be deleted

This is the only thing they are good at these days

Nitro 7

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This forum should get regulated by the SEC.

Then these type of manipulation will not be done..

VALUEPICK

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Quibit wrote:All blue chip companies share prices should come down. And market also would be affected Signifcantly. Downwards. Time to buy?

You are thinking outside of the box. Fortunately I have only one growth oriented blue chip in my portfolio. My portfolio has mid caps or above the size of small caps and below the size of mid caps. Companies start as small and then they becomes big. This is the time to go behind Consumer staples and some consumer discretionary stocks. Interim budget want to see growth in tea and rubber, farming, food and agriculture. Those are top areas in the economy.

san1985

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VALUEPICK wrote:

Quibit wrote:All blue chip companies share prices should come down. And market also would be affected Signifcantly. Downwards. Time to buy?

You are thinking outside of the box. Fortunately I have only one growth oriented blue chip in my portfolio. My portfolio has mid caps or above the size of small caps and below the size of mid caps. Companies start as small and then they becomes big. This is the time to go behind Consumer staples and some consumer discretionary stocks. Interim budget want to see growth in tea and rubber, farming, food and agriculture. Those are top areas in the economy.

Yeah absolutely correct Valuepick

She has a absurd out of the box thinking

There will be panic selling tomorrow..which will be temporary

As a experienced member she should try to better educate newcomers...instead trying to create panic among them by spreading false interpretations

Quibit

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I am looking at 1 year forward earning based PER valuation. Obviously I am correct. Prices will have to dip, may not be 25%. But what should I do? Buy or sell? Pleas answer my question instead of find fault with a small error.
Smile

wallstreetguy

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This is not the real Quibit! I have been in this forum for a very long time. I did contribute few posts , but I prefer staying low on this forum and being active on this site like my morning cup of coffee, everyday

And I'm telling you, this is not the quibit. The profile is hacked and been used by some other person, or Quibit is losing her sanity.

VALUEPICK

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I like this forward P/E ratio. I don’t think top blue-chip performers will do well in 2015. We can expect around 10 to 20% rise. As you said they can go down too in some point. Among blue chips SPEN and CARS didn’t do well in 2014. SPEN could do well in 2015/16. On the other hand some small and mid stocks can have attractive P/E ratio. It is good time to identify them after this interim budget. We should avoid overvalued stocks including over valued blue chips. It is better to go behind value stocks now. There are plenty of value stocks in the market. Institutional investors can have different approach to market and it is better to buy winning stocks before they come to the scene.

soileconomy

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Quibit wrote:I am looking at 1 year forward earning based PER valuation. Obviously I am correct. Prices will have to dip, may not be 25%. But what should I do? Buy or sell? Pleas answer my question instead of find fault with a small error.

Definitely this will have a negative impact on corporates. According to the proposal it is a one off item. Short term market may come down.

stockback

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Quibit wrote:I am looking at 1 year forward earning based PER valuation. Obviously I am correct. Prices will have to dip, may not be 25%. But what should I do? Buy or sell? Pleas answer my question instead of find fault with a small error.

I think you are not good with Economics and Politics. if you dont know dont talk. or get advise.

New government
1)Try to create 1Milion Jobs During next 6 Years.
2)new Budget amendment is give more money to people. that is good sign for money circular. in that case people can purchase more goods and services. then main company try to expand the business according to new demand. then create More jobs and they will make more profits expanding business(bcs they have to cover there own targets and market has good demand)

3)new government will put eye to manufacturing goods(maybe offer Tax Holidays). then big companies are try to invest money into that sector and take tax holiday.

4)this one time TAX. no need to Panic. its not effect to 25% share price. UNP will give more benefits (for Companies) after next election. we no need to Panic

you guys worry about 20-30 companies. but new government gave good benefits for all other 290 companies(in CSE)

EquityChamp

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The budget proposals have aimed to reduce the prices of many goods and services including electricity which will be a huge contributor to reduce inflation, reduce interest rates and thereby reduce the operating costs to any company. These are very good signs.

Only concern is the revenue proposals will have a negative impact on big companies, but not all. Ps read my thread on the analysis of the budget proposals on stock prices and the opportunities created by the same situation.
http://forum.srilankaequity.com/t40907-quick-screening-of-the-overall-impact-of-the-interim-budget-2015#253742

Happy trading coming days to all of you.

NZ BOY

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Sri Lanka to impose 'super gains' tax on company profits: Interim Budget 2015 Billio10

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CARACALLA

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Thanks 4 updating NZ,

NZ BOY

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Super gain tax 25% is good for small or medium capital investors

People should consider about good stocks now bcoz Already petrol and diesel price reduced.It would give good profit to most of the companies.

such as
GLAS,RWSL,ESL,VFIN,COLO,AGST,SIRA,SDB,PARQ,CFVF,MBSL,CSEC,UML,KHL,RHL,TYRE and ETC

nimantha80

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Earlier there was daily summary and discussions by them

EPS

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most of big companies are not paying tax directly. all of their subsidiaries are paying tax separatly and most of are below 2 bn. then no impact to market

Quibit

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Comments outside the topic will be deleted. Please respect the privacy of members. please follow the forum rules.

nalban

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Some forum members blames the poster when they see ideas they don't like.
It is a fact when a huge tax component come to the P&L from an interim budget any corporate will loose their bearings.
Sad thing is People still try to defend their political likings rather than looking at facts.

gamaya

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Somebody have to pay the bills for Infrastructure development and government expenditure. Is't it the corporates and the rich who are benefitting from the Highways, ports, airports and nice walkways. The threewheelers and motorbikes cant access the highways. And the poor dont come to the nice walkways to burn their excess fat..

The corporates largely evading taxes by expert knowledge of tax consultants. So the government is mainly depending on direct taxes from consumer public.

The wealth distribution in the country has deteriorated rapidly in past few years. There can be no democracy in or fairness in legal system in that kind of situation.

So this time the government had to bow down to the voters somehow.. Either it's their conscience or the upcoming general election..

Eitherway this is the way to go.. Now the corporates and the rich are campaigning that this is not fair. It's the super rich who are taxed. The survival and productivity of people should come first than the rich corporates.

Prices coming down 25% is a joke. We can see even on friday foreign net buying. The importance about foreign buying is these are mainly foreign institutions, which do some kind of analysis before trading.

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Sri Lanka to impose 'super gains' tax on company profits: Interim Budget 2015

1 Sri Lanka to impose 'super gains' tax on company profits: Interim Budget 2015 Thu Jan 29, 2015 3:56 pm

Mr.GP

2 Re: Sri Lanka to impose 'super gains' tax on company profits: Interim Budget 2015 Thu Jan 29, 2015 6:36 pm

Quibit

3 Re: Sri Lanka to impose 'super gains' tax on company profits: Interim Budget 2015 Thu Jan 29, 2015 6:40 pm

Quibit

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san1985

5 Re: Sri Lanka to impose 'super gains' tax on company profits: Interim Budget 2015 Thu Jan 29, 2015 6:48 pm

worthiness

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san1985

7 Re: Sri Lanka to impose 'super gains' tax on company profits: Interim Budget 2015 Thu Jan 29, 2015 6:52 pm

nimantha80

8 Re: Sri Lanka to impose 'super gains' tax on company profits: Interim Budget 2015 Thu Jan 29, 2015 6:55 pm

san1985

9 Re: Sri Lanka to impose 'super gains' tax on company profits: Interim Budget 2015 Thu Jan 29, 2015 7:00 pm

Nitro 7

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VALUEPICK

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wallstreetguy

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VALUEPICK

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soileconomy

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stockback

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