Sri Lanka capital gains tax likely to apply to land, shares: minister

ECONOMYNEXT – Sri Lanka’s planned capital gains tax is likely to apply to land as well as shares, Megthough it exact application is not yet known, Megapolis Minister Patali Ranawaka said. Sri Lanka’s land values are going up especially when infrastructure projects are built, but the state is unable to capture any of its value, he told a Sri Lanka’s Foreign Correspondents’ Association in Colombo. In most countries the sale of the house which is the main residence of a person in exempt from capital gains tax. There are annual exempt thresholds as well. In the UK it is 11,000 pounds or about two million Sri Lanka rupees a year and only gains above the limit are taxed. This give relief to small investors and property owners. In Sri Lanka there is a high degree of uncertainty about how the tax will be applied, which has made investors jittery. (Colombo/June28/2016)

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