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Over 20 Sri Lanka listed firms to be hit by super tax, telcos take multiple blows

COLOMBO (EconomyNext) – Over 20 listed companies would be hit by a proposed ‘super gains’ tax on large firms while telecom firms would take multiple blows, with a series of taxes imposed to mainly fund an unprecedented salary hike to state workers.

John Keells Holdings, Distilleries, Ceylon Tobacco, Carsons, Bukit Darah, Aitken Spence, Nestle, Oversea Realty, Access Engineering, Lanka IOC, Lanka Lubricants, AHPL, HHL and Tokyo may have to pay the tax.

Commercial Bank, HNB, Sampath, Ceylinco Insurance, DFCC, Seylan, NTB, NDB, Central Finance, People’s Leasing would be among financial sector firms that may have to pay the tax.

Telecom companies which have been asked to absorb a 25 percent tax on pre-paid cards will take another hit on the bottom line.

NDBS Stockbrokers said if the senior citizens interest bonus is state funded and it is given to all banks, listed ones may also benefit. An interest cap on credit cards would affect NTB and Sampath most but there may be a volume benefit, the brokerage said.

Guaranteed prices on milk would hurt Nestle, Coco, Lanka Milk Foods and Lamb, while Nestle and LMF would be hit by a reduction of margins on milk powder.

The 200 million rupee monthly charge on alcohol producers may eventually help them by shaking out small producers, First Capital Treasuries said.

A tax reduction on small cars may also help, vehicle importers. Analysts say a clampdown on car assembly may also help cars importers with full duty.

 

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