Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum
Sri Lanka Equity Forum
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

සිංහල පරිවර්තනය
Contribute
Submit Post

Submit Post

Latest topics

» Malwatte Valley Plantations Ltd... MAL.N0000
by Cma Today at 1:35 am

» ඔබත් සුලු කොටස් අරගෙන අත්ව්ඳ පලපුරුද්ද ලබා ගැනීමට උත්සාහ ගන්න.
by Baba2020 Today at 1:23 am

» Hotel rally with GHLL
by Mithooshan Yesterday at 11:30 pm

» TOKYO CEMENT COMPANY (LANKA) PLC
by Baba2020 Yesterday at 11:04 pm

» KEEP ON EYE COMB.N AND COMB.X
by pra4u Yesterday at 9:59 pm

» HAYLEYS FABRIC PLC (MGT.N0000)
by Sandaruwan mk Yesterday at 9:38 pm

» මේ LOLC සමූහය BRWN – BIL –CLC- LOFC ) මට පේන විදිහ - මේ මගේ අදහස
by Eranga87 Yesterday at 9:22 pm

» HAYCARB PLC
by Win Win Yesterday at 8:56 pm

» HAYCARB PLC (HAYC.N0000)
by Win Win Yesterday at 8:53 pm

» EAST WEST PROPERTIES PLC (EAST.N0000)
by Dr_CSE Yesterday at 8:43 pm

» KELANI VALLEY PLANTATIONS PLC (KVAL.N0000)
by gosrilanka Yesterday at 7:21 pm

» Dr. Godahewa to be State Minister for capital markets
by rajini Yesterday at 7:10 pm

» plantation Sector
by pra4u Yesterday at 4:17 pm

» Russia's claim to Covid 19 vaccine & Capital markets
by dayandacool Yesterday at 4:13 pm

» DON'T MISS DIPPED PRODUCTS[DIPD]
by Beta1 Yesterday at 3:39 pm

» HVA FOODS PLC (HVA.N0000)
by samaritan Yesterday at 1:35 pm

» After BIL right issue next LOLC... be careful..
by kalu351 Yesterday at 1:21 pm

» LANKEM DEVELOPMENTS PLC (LDEV.N0000)
by kalu351 Yesterday at 9:55 am

» ස්ථාවර රජයක්
by Kipling Yesterday at 9:31 am

» LOLC HOLDINGS PLC (LOLC.N0000)
by Real_Investor Yesterday at 7:53 am

» ASIA SIYAKA COMMODITIES PLC (ASIY.N0000)
by viduranga Mon Aug 10, 2020 11:45 pm

» BROWNS INVESTMENTS PLC (BIL.N0000)
by vikiperera Mon Aug 10, 2020 9:56 pm

» BRWN.........BRWN.........BRWN.........BRWN.........
by Baba2020 Mon Aug 10, 2020 9:28 pm

» DISTILLERIES COMPANY OF SRI LANKA PLC (DIST.N0000)
by Eranga87 Mon Aug 10, 2020 8:52 pm

» ACCESS ENGINEERING PLC (AEL.N0000)
by ADVENTUS Mon Aug 10, 2020 6:08 pm

» TYRE - prospets in the new Government
by Kipling Mon Aug 10, 2020 2:28 pm

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC

Who is online?
In total there are 90 users online :: 2 Registered, 0 Hidden and 88 Guests

Intrinsic, Promoney

Most users ever online was 541 on Mon Sep 19, 2011 11:29 am
Statistics
We have 23030 registered users
The newest registered user is ChamikaNirmal

Our users have posted a total of 353132 messages in 52239 subjects

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Sri Lanka Tax cut is harmful-World Bank

Sri Lanka Tax cut is harmful-World Bank

Go down  Message [Page 1 of 1]

1Sri Lanka Tax cut is harmful-World Bank Empty Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 12:02 pm

Teller

Teller
Moderator
Moderator
Sri Lanka’s economy could be destabilized if a fiscal stimulus in the form of a tax cuts turns out to be unsustainable, the World Bank Chief Economist for South Asia, Hans Timmer said.

“In Sri Lanka, going forward, there’s objectively a reason for fiscal stimulus but there’s not enough space to actually do it,” Timmer said, speaking at a public lecture organized by the Central Bank of Sri Lanka on the effects of slowing global growth in South Asia.

“Then you have to be very careful to balance that. Because if you over-stimulate when you don’t have the room, instead of stabilizing economy, you could destabilize the economy,” he said.

Sri Lanka’s new cabinet under President Gotabaya Rajapaksa has announced a series of tax cuts, as economic growth fell to 1.6 percent in the second quarter of 2018, in the wake of currency collapse in 2018, triggered by liquidity injections despite tight fiscal policy.

The 2018 currency collapse came on top of a 2015/2016 currency collapse, triggered by liquidity injections by the central bank as the budget deficit deteriorated.

You may also read:

Sri Lanka to have framework to stop ‘stimulus’ leading to inflation, BOP pressure

Sri Lanka needs monetary discipline to avoid further downgrades: Bellwether

Sri Lanka budget deficit wider in 2019 as monetary instability hits taxes

Timmer said if countries want to solve structural problems which impede growth, it is better to focus on monetary stimulus while such problems are addressed, and if there is only a temporary slowdown, fiscal stimulus is preferred.

With falling revenues and slower than expected growth, Sri Lanka’s 2019 budget deficit is already estimated to have widened to 7 percent of gross domestic product.

With little fiscal space, countries like Sri Lanka will find it difficult to spur growth sustainably with fiscal stimulus, he said.

“You need to build confidence among investors, focus on sources of potential high growth and focus on areas of opportunities for exports, but for some reason, these opportunities have not been taken,” Timmer said.

He said Sri Lanka needed to tap into underutilized resources, such as the informal sector, women, and create the right policies to allow investors to harness these labour pools and increase confidence in the market.

“So, instead of spending as a government to create domestic demand, you create the right policies so that people will come and invest.”

He said countries in South Asia have common structural problems which have to be addressed, such as protectionism, crony capitalism, weak regional integration and low female labour force participation.

Timmer also said South Asian countries have tended to run Keynesian-heavy policies throughout economic cycles, stimulating through both busts and booms.

“It’s true for every country in South Asia. In the past, they ran mostly cyclical policies, they don’t build buffers.”

“I hope countries learned the lesson that it’s good to run counter-cyclical policies in good times too to build up reserves,” he said. (Colombo/Dec04/2019)

2Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 12:03 pm

Teller

Teller
Moderator
Moderator
This is the reason , i recently downgraded so many stocks. Experience and matured investors this movement look as a negative sentiment.


_________________




Teller said is said..

3Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 1:18 pm

NANDANA2012


Manager - Equity Analytics
Manager - Equity Analytics
When coupled with many other measures taken by Govt, including appointing right people to SOE, Cut in Govt spending, reduce wastage, increased security, increased tourism, more production. more exports. more local induatrial activity. control in corruption (to some extent)  - World Bank will be proved wrong soon. Remember we have a person Leading the country who have proved many times he can deliver impossible targets. JUST WAIT 2/3 QUARTERS AND LETS DISCUSS THIS THREAD AGAIN THEN...Theories can be proved wrong if u are strong...

4Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 1:35 pm

Quibit

Quibit
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Sri Lanka Tax cut is harmful-World Bank C04b9c10

5Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 2:01 pm

Arrowrisk

Arrowrisk
Manager - Equity Analytics
Manager - Equity Analytics
Failure by the new Government to remove tax on dividends despite pre-election promise of scrapping WHT has irked investors. 

In the stimulus package announced last week by the Cabinet, only interest income up to Rs. 250,000 per month was exempted from the Withholding Tax (WHT), with effect from 1 January 2020. However prior to the election, presidential aspirant announced WHT along with Economic Service Charge (ESC) will be scrapped. Only ESC of 0.5% has been proposed to be done away with. The effective date of this amendment is yet to be announced.

The original announcement boosted investor and shareholder sentiment but failure last week to fulfil the pledge wholly is being viewed as a setback. 

“Continuity of 14% WHT on dividend is a total deterrent for investors,” analysts said, adding that the rate itself was high.

The WHT on dividend was introduced as a revenue enhancing measure by the Yahapalanaya regime.

Analysts estimate 14% WHT nets around Rs. 9 billion, but its withdrawal would have had a greater beneficial impact in making the Colombo stock market attractive, and widen the capital market participation. 

Other analysts said that the Government announced the removal of Capital Gains Tax of 10% on share transactions which is positive for the market. Effective date of this however is yet to be confirmed. 

Rajapaksa also pledged to scrap Pay As You Earn (PAYE), but that, too, was not fulfilled. 

The final decision was to increase the tax free threshold of the employment income of all public and private sector employees for the purpose of PAYE from Rs. 100,000 to Rs. 250,000 per month and the excessive personal income liable for income tax at the progressive rate of 6%, 12% and 18% for each tax slab of Rs. 250,000, with effect from 1 January 2020


http://www.ft.lk/front-page/Failure-to-remove-WHT-on-dividends-irks-investors/44-690924

6Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 2:06 pm

SECsux


Senior Equity Analytic
Senior Equity Analytic
World bank can look after their own business.We will cut imports to balance things

7Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 2:12 pm

NANDANA2012


Manager - Equity Analytics
Manager - Equity Analytics
@Arrowrisk wrote:Failure by the new Government to remove tax on dividends despite pre-election promise of scrapping WHT has irked investors. 

In the stimulus package announced last week by the Cabinet, only interest income up to Rs. 250,000 per month was exempted from the Withholding Tax (WHT), with effect from 1 January 2020. However prior to the election, presidential aspirant announced WHT along with Economic Service Charge (ESC) will be scrapped. Only ESC of 0.5% has been proposed to be done away with. The effective date of this amendment is yet to be announced.

The original announcement boosted investor and shareholder sentiment but failure last week to fulfil the pledge wholly is being viewed as a setback. 

“Continuity of 14% WHT on dividend is a total deterrent for investors,” analysts said, adding that the rate itself was high.

The WHT on dividend was introduced as a revenue enhancing measure by the Yahapalanaya regime.

Analysts estimate 14% WHT nets around Rs. 9 billion, but its withdrawal would have had a greater beneficial impact in making the Colombo stock market attractive, and widen the capital market participation. 

Other analysts said that the Government announced the removal of Capital Gains Tax of 10% on share transactions which is positive for the market. Effective date of this however is yet to be confirmed. 

Rajapaksa also pledged to scrap Pay As You Earn (PAYE), but that, too, was not fulfilled. 

The final decision was to increase the tax free threshold of the employment income of all public and private sector employees for the purpose of PAYE from Rs. 100,000 to Rs. 250,000 per month and the excessive personal income liable for income tax at the progressive rate of 6%, 12% and 18% for each tax slab of Rs. 250,000, with effect from 1 January 2020


http://www.ft.lk/front-page/Failure-to-remove-WHT-on-dividends-irks-investors/44-690924
We cant be asking everything at once when so many is given.

Sametime Govts need to realise open share markets bring in Foreign investment to the Country and that itself is a huge benefit for the Country, and killing it with taxes is crazy..Already some taxes built into trading fees. (1.2%)

8Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 2:16 pm

NANDANA2012


Manager - Equity Analytics
Manager - Equity Analytics
@SECsux wrote:World bank can look after their own business.We will cut imports to balance things
Actually this is their business.... !!!

9Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 2:33 pm

SECsux


Senior Equity Analytic
Senior Equity Analytic
@NANDANA2012 wrote:
@SECsux wrote:World bank can look after their own business.We will cut imports to balance things
Actually this is their business.... !!!
their importance to us depends on our ruler.

10Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 2:46 pm

Teller

Teller
Moderator
Moderator
world bank chief statement against sri lankas tax relief spreaded wole over the world. Logically some of his concerns are correct. Foreign participation may negative in coming months


_________________




Teller said is said..

11Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 3:10 pm

samaritan


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
There are several people who are concerned about where will the govt find the revenue to bridge the shortfall that could result owing to tax concessions. In the first place we are all used to a sluggish, inefficient, good for nothing administration which had been in control of the country's finances over the recent past without proper leadership. Hence, the skepticism is understandable.
One must understand that the govt also would have done their part of the home work prior to deciding on fiscal measures. In my opinion the govt is in the process of establishing political stability in a secure environment which are essential prerequisites to attract foreign investments. The Port City has the potential to attract massive investments and could achieve the status of an Hi tech commercial hub in the region as well. Tourism a major foreign exchange earner suffered a major setback due to the previous regime's careless attitude towards nation's national security. This sector will be revived with the incentives offered and govt's backing in order to reinstate the lost confidence of the tourists.
Most importantly we have a Meritocrat cum Technocrat and an efficient & capable leader for the first time in the political history of Sri Lanka to lead the nation. The country is to witness an unprecedented profound transformation which could be a surprise to most of us. So, Let's give it a chance and put an end to the negative thinking.

12Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 5:57 pm

NANDANA2012


Manager - Equity Analytics
Manager - Equity Analytics
@samaritan wrote:There are several people who are concerned about where will the govt find the revenue to bridge the shortfall that could result owing to tax concessions. In the first place we are all used to a sluggish, inefficient, good for nothing administration which had been in control of the country's finances over the recent past without proper leadership. Hence, the skepticism is understandable.
One must understand that the govt also would have done their part of the home work prior to deciding on fiscal measures. In my opinion the govt is in the process of establishing political stability in a secure environment which are essential prerequisites to attract foreign investments. The Port City has the potential to attract massive investments and could achieve the status of an Hi tech commercial hub in the region as well. Tourism a major foreign exchange earner suffered a major setback due to the previous regime's careless attitude towards nation's national security. This sector will be revived with the incentives offered and govt's backing in order to reinstate the lost confidence of the tourists.
Most importantly we have a Meritocrat cum Technocrat and an efficient & capable leader for the first time in the political history of Sri Lanka to lead the nation. The country is to witness an unprecedented profound transformation which could be a surprise to most of us. So, Let's give it a chance and put an end to the negative thinking.
True, GOTA will be a different leader who go beyond theories, traditions and practices and then only you can jump start and achieve above normal growth rate, already they are talking about 6% for 2020. If so, 8% for 2021 not difficult.  HIS VISION ALSO ABOUT ACHIEVING DEMOCRACY AND NORTH EAST ISSUES THROUGH FAST ECONOMIC DEVELOPMENT, which has a good logic. STRONG ACTIVE LEADERS CAN CHANGE HISTORY AND ALSO MAKE THEORIES NOT SO IMPORTANT.

13Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 6:01 pm

NANDANA2012


Manager - Equity Analytics
Manager - Equity Analytics
@Teller wrote:world bank chief statement against sri lankas tax relief spreaded wole over the world. Logically some of his concerns are correct. Foreign participation may negative in coming months
Already there was not much foreign participation and also during last 5 years where many funds were just visiting Colombo due to Invitation from Ranil and his western masters. Still they didnt invest. True there will be not much western interest soon, as the current Govt is considered anti-democratic. But ultimately when things start move, they will find it difficult to keep away...

14Sri Lanka Tax cut is harmful-World Bank Empty Re: Sri Lanka Tax cut is harmful-World Bank on Thu Dec 05, 2019 8:13 pm

Teller

Teller
Moderator
Moderator
Based on above statement , most of the shares will be worthy not now but in 2021-2022, so why we pay high prices at the moment. Thats why i always advise members compare with the dividend VS current bank interest as a percentage. Better payback , i mean the cash flow is very important rather than EPS or NAVPS


_________________




Teller said is said..

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum