Share Transaction Levy to be reintroduced from April 15

The Colombo Stock Exchange (CSE) yesterday announced the reintroduction of Share Transaction Levy of 0.3 percent, which was removed by the 2016 budget. 

The charging of the levy will come into effect from April 15, 2016. Accordingly, 0.3 percent will be charged as a tax from every buyer and seller on the turnover of every share transaction conducted through the CSE. 

The reintroduction of Share Transaction Levy comes in the backdrop of Prime Minister Ranil Wickremesinghe proposing to charge capital gains tax, which was lobbied by the capital market regulator and the CSE. Market analysts welcomed the reintroduction of the Share Transaction Levy, saying that it was the most practical method to tax share transactions.