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Tax rate surge spoiled Venture's Q1 results
Will it fall in the next 3 quarters?
Venture's good first quarter results were dented by a high tax rate. The mainboard-listed electronics services provider reported that it was hit with an effective tax rate of 14.9% in Q1.
This figure is almost double compared to the effective tax rate of 8.8% that the group reported in the same period last year.
According to CIMB analyst William Tng, tax rate rose due to the low revenue contribution from tax-exempt products.
"With another 3 quarters to go, the effective tax rate could fall if the revenue mix skews more towards tax-exempt products," Tng noted.
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