The Colombo Stock Exchange (CSE) today announced that the Share Transaction Levy of 0.3 percent, which was removed with effect from 1 January 2016, will be re-imposed with 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 trading transaction, conducted through the CSE with effect from Friday, April 15, 2016, the Chief Operating Officer of CSE, Renuka Wijayawardhana announced in a circular.

The proposal to initially remove Share Transaction Levy was announced in the government’s 2016 budget presented to parliament in November and was aimed at encouraging share market trading.

According to recent reports, the government had indicated plans to impose Capital Gains Tax which was met with stiff opposition from capital market stakeholders who instead preferred the Share Transaction Levy.