Sri Lanka’s second-largest listed firm, Expolanka Holding PLC will not be subjected to a one-off 25% surcharge tax proposed in budget 2022 given the company’s earnings heavily skewed its overseas subsidiaries, according to NDB Securities.
The government yesterday proposed a one-off 25% surcharge tax on taxable income of firms that have earned over Rs.2 billion in 2020/2021 FY.
However, NDB Securities noted that Expolanka’s earnings as a standalone compnay were less than Rs.2 billion in the FY.
Further, a 2.5% social security levy was also proposed in the budget 2022 on firms with over Rs.120 million in turnover. The impact of this levy on Expolanka is estimated at 5-7% of the firm’s local revenue.
Expolanka Group recorded a revenue of Rs. 151.4 billion (YoY + 208%), a Gross Profit of Rs. 22.6 billion (YoY + 114%) and a Profit after Tax of Rs. 12 billion (YoY + 166%) for the quarter ending 30th September 2021.
It was the second-largest listed entity in terms of market cap on the Colombo Stock Exchange (CSE)valued at Rs.382.6 billion. as of last friday