With reports that a Capital Gains Tax is to be imposed on share transactions, the daily trading at the Colombo Stock Market dropped to an unsatisfactory low by noon today (08 March). Accordingly, the All Share price Index (ASPI) dropped by 114.15 per cent, this driving the ASPI to a below 6,000 point low for the first time since 01 April 2014.
In response to an inquiry by Ada Derana Biz, Colombo Stock Brokers’ Association chairman and Director/Chief Executive Officer of the Candor Group Ravi Abeysuriya had this to say:
“There is a rumor currently doing the rounds that a Capital Gains Tax s to be introduced stock market. This has pushed down the ASPI by 100 points today. It is learned that this tax would be imposed not only on the share market. This is being done for the government to earn revenue. The Capital Gains Tax is operational in countries like India, England, the United States etc. Something like this would definitely impact on the stock market.”
Adding further, the Colombo Stock Brokers’ Association chairman said that earlier a transaction tax had been introduced for share transactions but steps had been taken later for this to be removed through the last budget proposals.