ECONOMYNEXT – No changes were planned for taxes on stock market trading in revamped income tax law being presented to parliament tomorrow, State Minister for Finance Eran Wickramaratne said.
"There will not be a change on how stock market transactions are taxed," Wickramaratne told reporters in Colombo.
"The current share transaction levy will continue."
The new Inland Revenue bill proposed a steep 28 percent tax on profits of stock trading (capital gains), instead of a more reasonable rate like 5 or 10 percent, while long term investment would remain free of tax.
At the moment only 0.3 percent tax is imposed on stock at the point of purchase. The new administration however slapped a 15 percent value added tax on hospital care.
Over 100 amendments are planned for the bill from what was originally gazetted, officials have said. (Colombo/Aug24/2017)