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Sri Lanka Equity Forum » Stock Market Talk » POSITIVELY AND NEGATIVELY AFFECTED SHARES FROM THE BUDGET !!!!

POSITIVELY AND NEGATIVELY AFFECTED SHARES FROM THE BUDGET !!!!

Go down  Message [Page 1 of 1]

kassachandi


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Friend lets list them in this thread

Maxime


Senior Equity Analytic
Senior Equity Analytic
chicken price going to under control Rs 420.00 per kg

Maxime


Senior Equity Analytic
Senior Equity Analytic
The government will focus on protecting the fisheries sector



good for TESS

wdse


Stock Trader
Some Negatives:

- Dividend tax from 10% to 14%????
- Concessionary tax rate of 12% increased to 14% - eg hotels 
- Interest/dividend exemption on listed corporate debt securities removed
-Capital gain tax of 10% on gains realized from sale of immovable properties

EquityChamp

avatar
Moderator
Corporate tax slabs of 14%, 28% and 40% reveals higher taxes for high profitable organizations. If we name some JKH, COMB, HNB, CTC, CCS,SAMP,NEST, DFCC,LOLC, etc will have to pay higher tax for 2016/17 financial year. This will reduce the profitability for one year and then to improve if further tax hike will not be introduced in next budget.

Increase of telecommunication levy by 25% will lead to some reduction of revenue for DIAL and SLT due to elasticity effect. The impact can be seen for about two quarters and then should be back to normal.

Several concessions extended to poultry including the increase of MRP by 10/-, encouraging farmers to produce maize locally, extending duty concessions for maize imports are some of them. We should see more profits from TAFL, GRAN,BFL in the longer term too.

Confirmation of no CGT on stock market gains have eliminated a major risk on CSE investors.

Increase of direct tax and reduction in some of the recurring expenditure will lead to reduction in government deficit will in turn ease the pressure on macro economic parameters such as inflation, interest rates and exchange rates.

Restriction of no of acres for plantation companies to 5000 acres to be analyzed further. Sometimes their income levels can be dropped. Government was more worried on the productivity of tea and rubber sectors as they are thinking those crops were neglected and alternative crops like oil palms were gaining the priority so I think the plantation sector is the main sector to affect but it has been already affected which means its going to be a dead-rubber case.

Anyway I am yet to analyze the whole picture. Will keep you updated.

EquityChamp

avatar
Moderator
plus the initiative to list Mobitel, Hytte, Grand Orient and Waters Edge and creation of separate board for SMEs going to be a definite booster for the CSE.

EquityChamp

avatar
Moderator
CTC will have to bear 500mn one off cost for the next financial year. Meka nam urage malu uragema pite thiyala kapeemak.

Bullrunner7

avatar
Manager - Equity Analytics
Manager - Equity Analytics
75% waiver of PAL for construction sector

happybulls

avatar
Equity Analytic
Equity Analytic
[quote="EquityChamp"]Corporate tax slabs of 14%, 28% and 40% reveals higher taxes for high profitable organizations. If we name some JKH, COMB, HNB, CTC, CCS,SAMP,NEST, DFCC,LOLC, etc will have to pay higher tax for 2016/17 financial year. This will reduce the profitability for one year and then to improve if further tax hike will not be introduced in next budget.

What is the present corp tax for those companies ? I think it is same rate



EquityChamp

avatar
Moderator
Correction. Only change is the change in lower rate either from 12% to 14%. The 28% tax rate has not changed. Therefore no additional tax burden for most of the good companies including JKH, COMB, HNB, CCS, SAMP,NEST,DFCC etc.

But there is a new levy called FTL is introduced. This levy charges Rs5/- for every 10,000 transaction with banks. That means 0.05% on financial transaction. Though the rate looks very marginal if you consider the volume then the additional cost is substantial. if you look at the revenue plan government is planning to raise quite a large revenue from this. So the finance cost of all the companies will tend to go up due to this levy.

stockback


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@EquityChamp wrote:Correction. Only change is the change in lower rate either from 12% to 14%. The 28% tax rate has not changed. Therefore no additional tax burden for most of the good companies including JKH, COMB, HNB, CCS, SAMP,NEST,DFCC etc.

But there is a new levy called FTL is introduced. This levy charges Rs5/- for every 10,000 transaction with banks. That means 0.05% on financial transaction. Though the rate looks very marginal if you consider the volume then the additional cost is substantial. if you look at the revenue plan government is planning to raise quite a large revenue from this. So the finance cost of all the companies will tend to go up due to this levy.


I think that amount charge from Customers (Consumers)

EquityChamp

avatar
Moderator
Customers of banks.

Anyway by looking at the whole budget I don't think that there is anything wrong in it to demotivate investors. So tomorrow market should be up. Lets wait and see.

kassachandi


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
No tax for listed share trading. That's all we need. Green sure today

sisira.wijeweera


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@kassachandi wrote:No tax for listed share trading. That's all we need.  Green sure today
ada Ravi gee kattiya point 100 market eka UP karai wagee   alien alien alien

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