Cabinet announces massive tax cuts

Cma · 1 Cabinet announces massive tax cuts Wed Nov 27, 2019 4:43 pm

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* උපයනවිට ගෙවීම් සඳහාවන ආදායම් බද්ද
* ගෘහස්ත නිෂ්පාදන සඳහා අය කරන භාණ්ඩ හා සේවා මත අය කරන ජාතිය ගොඩ නැගීමේ බද්ද
* ආර්ථික සේවා ගාස්තු
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* පොලී මත අය කරන විවිධ වර්ගයේ රැඳවුම් බදු
* ණය සේවා බදු
වහාම ක්‍රියාත්මක වන පරිදි මෙම බදු වර්ග සියල්ල අහෝසි කිරීමට කැබිනට් මණ්ඩලය තීරණය කරයි - කැබිනට් ප්‍රකාශක
#lka #Tax #SriLanka

Promoney · 2 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:06 pm

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There has not been capital gains tax on the stock market.. I wonder what that actually is

Invest2018 · 3 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:17 pm

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Is it divided tax

Kaish86 · 4 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:23 pm

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Stock market capital gains already exempted.
They should have exempted tax on either buying or selling side.
Super. Govt should also have a mechanism to monitor whether the benefit passed on to end users.

Captain · 5 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:32 pm

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To reduced income tax rate on constructions to 14% from current 28%

Almost 250 mn tax saving on AEL.N

Will have a run tommorow for sure

samaritan · 6 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:36 pm

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For the past four & half years political instability and compromised national security caused immense damage to the economy. Now the country is slowly coming out of the rut.

Promoney · 7 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:39 pm

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Construction companies have got the biggest benefit
1) Income tax reduced to 14% from 28%
2) VAT reduced to 8% from 15%
3) NBT completely removed

Captain · 8 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:51 pm

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Yes

ThilinaM · 9 Huge respect for GOTA regarding tax cut Wed Nov 27, 2019 5:53 pm

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this man have a back bone. he do what e say. Smile

Huge salute scratch

samaritan · 10 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 6:14 pm

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GR is a visionary leader who can lead Sri Lanka in the path to prosperity.

Quibit · 11 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 8:11 pm

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Cabinet announces massive tax cuts
Colombo (News 1st) – The first cabinet meeting under President Gotabaya Rajapaksa was held this afternoon. Following the meeting, a number of tax reliefs were announced by Co-Cabinet Spokesperson Min. Bandula Gunawardene during the Cabinet media briefing.

It was announced that the new administration would do away with NBT on household goods, Debit Tax, PAYE Tax and Withholding Tax on Interest with immediate effect. All taxes imposed on the remittances made by expat workers will be removed while places of religious worship will also be exempt from all taxes.

The Cabinet has also decided to reduce the Value Added Tax from 15% to 8% from the 1st of December. In addition, the telecommunications levy has been reduced by 25%.

CSE Capital Gains Tax and Debt Services tax has also been abolished.

Invest2018 · 12 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 8:35 pm

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bhanu · 13 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 8:39 pm

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Chicken will run... Also tax cut will have positive effect on dialog and slt

wealth123 · 14 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 8:42 pm

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AEL / Bank & Finance will have a Direct impact.
Also Cargills / Rich will have the same.

wealth123 · 15 Re: Cabinet announces massive tax cuts Thu Nov 28, 2019 5:04 am

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2.00% NBT & 7.00% DRL removed, Also the reduction in General VAT and Telecommunication levy has a favorable impact on Finance Companies. ( Overhead cost & will improve the NPL's )
LOFC NAV @ 5.40, VFIN NAV @ 99.00.
These two shares will have a run in next two weeks, atleast to touch their NAV's.

bhanu · 16 Re: Cabinet announces massive tax cuts Thu Nov 28, 2019 10:15 am

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bhanu wrote:Chicken will run... Also tax cut will have positive effect on dialog and slt

Dialog a huge jump. Unfortunately only retailers are buying..

Teller · 17 Re: Cabinet announces massive tax cuts Thu Nov 28, 2019 1:13 pm

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Dont think much magic on this market hike, i can remember few months earlier Indian government, Prime minister Moodhy ahnounces huge tax cut , suddenly their Stock market indices up with life time high, after two to three weeks market down worsly . The same scenario will apply to us also. Only intelligent investor will utilize this bubble to earn money. Poor retailers again will be in the trap. Those who have knowledge with less greedy will win the situation . Remember this cut expands the budget deficit above 5% and loss the revenue more than 1000 billion . Im agree if they implement with a proper revenue genarating sources against this loss. I believe scenarios should be practical rather than emotional. As investors its upto you to decide buy ,sell or hold, but this my opinion. Experienced and intelligent investors will understand what i say here. Good luck

Sajeewa Niranjan · 18 Re: Cabinet announces massive tax cuts Thu Nov 28, 2019 2:02 pm

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@Teller- what to buy in this situation Crying or Very sad

zenobia1 · 19 Re: Cabinet announces massive tax cuts Thu Nov 28, 2019 5:45 pm

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removal of the withholding tax from bank interest will be disastrous; here is why:
that tax at 5% was the final tax. if it is not withheld at the source, the bank interest will be added to your income to be taxed at max of 18%. it is a far worse situation than the current payment of 5% witholding tax as the final tax, correct me if i am wrong

samaritan · 20 Re: Cabinet announces massive tax cuts Thu Nov 28, 2019 8:47 pm

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zenobia1 wrote:removal of the withholding tax from bank interest will be disastrous; here is why:
that tax at 5% was the final tax. if it is not withheld at the source, the bank interest will be added to your income to be taxed at max of 18%. it is a far worse situation than the current payment of 5% witholding tax as the final tax, correct me if i am wrong

In that case it is stated that Capital Gains Tax on share investments is also removed. Does it mean that the Capital Gains will be added to your taxable income?
However, clarifications are necessary in relation to WHT on bank interest. Gazette notification will only reveal full details.

Teller · 21 Re: Cabinet announces massive tax cuts Thu Nov 28, 2019 10:13 pm

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I was not charge any capital gain taxes against share trading? So if it was not imposed, whats the hell , they are telling about removal?

fireshelter · 22 Re: Cabinet announces massive tax cuts Thu Nov 28, 2019 10:37 pm

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CG Was Not there for shares

stockback · 23 Re: Cabinet announces massive tax cuts Thu Nov 28, 2019 11:19 pm

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bhanu wrote:

bhanu wrote:Chicken will run... Also tax cut will have positive effect on dialog and slt

Dialog a huge jump. Unfortunately only retailers are buying..

can you give time line please..

I dont see any big issue..

I mean BSE index and tax cut. Tax cut hapen 23 september.

can you give more details..

samaritan · 24 Re: Cabinet announces massive tax cuts Fri Nov 29, 2019 10:22 am

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Teller wrote:I was not charge any capital gain taxes against share trading? So if it was not imposed, whats the hell , they are telling about removal?

Can you remember under the earlier regime they kept investors guessing whether CGT will be implemented or not and at the same time splurged on public money.
The present govt wants to make it clear in no nonsense terms that there will not be any CGT, but the wording of removal is wrong.

Captain · 25 Re: Cabinet announces massive tax cuts Fri Nov 29, 2019 11:50 pm

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As prt IRD NOTICE issued today exeptions and rate reduction has been back dated yo whole Y/A 2019/20,

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Cabinet announces massive tax cuts

1 Cabinet announces massive tax cuts Wed Nov 27, 2019 4:43 pm

Cma

2 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:06 pm

Promoney

3 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:17 pm

Invest2018

4 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:23 pm

Kaish86

5 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:32 pm

Captain

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samaritan

7 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:39 pm

Promoney

8 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 5:51 pm

Captain

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ThilinaM

10 Re: Cabinet announces massive tax cuts Wed Nov 27, 2019 6:14 pm

samaritan

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Quibit

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Invest2018

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bhanu

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wealth123

15 Re: Cabinet announces massive tax cuts Thu Nov 28, 2019 5:04 am

wealth123

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bhanu

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Teller

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Sajeewa Niranjan

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zenobia1

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samaritan

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Teller

22 Re: Cabinet announces massive tax cuts Thu Nov 28, 2019 10:37 pm

fireshelter

23 Re: Cabinet announces massive tax cuts Thu Nov 28, 2019 11:19 pm

stockback

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samaritan

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