Monday, 25 November 2013 00:00
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By Acuity Stockbrokers
Budget 2014 appears development-oriented in nature with a major focus on SMEs and social development.
The Budget aims at achieving a GDP growth of 7.5% - 8% during 2014-2016, while simultaneously targeting a budget deficit of 5.2% of GDP in 2014 and 4.5% in 2015. Although significantly less than in the previous budget, this year too incentives have been provided for the development of capital markets. Proposals include a 50% tax holiday (for 3 years) for all Banking, Finance, Insurance and Manufacturing companies (which are liable to profit tax >28%) which list on the CSE in 2014. Incentives have also been provided to the Plantations sector, among which credit schemes and exemptions from certain import restrictions have been provided to larger players. Meanwhile, a 2% NBT tax has been imposed on the Banking & Finance sector while a proposal for banks and parent companies to merge finance company subsidiaries has been included.
