COLOMBO: Capital gains tax that had been shelved since 1987 is to be re-introduced with the budget 2017 targeting the real estate sector say reports.
Accordingly, a tax of 10 to 15 per cent would be imposed on real estate sector and as a result the prices of land would increase say these sources.
Already, land transactions include stamp fees of 4% and other taxes and when the capital gains tax is introduced about 50% of the land value would be added to the land as taxes.
This would increase prices of lands in a very big margin point out these sources.
