In the wake of the tax changes in the budget, reports claim that Vector is hopeful that it would witness a hike in its tax net profit of $20 million till June 30, in the current year.

The energy distribution and fibre optic network Company estimates the increase in the gains.

Reports claim that the external auditors had advised the Company on the suitable accounting handling for the tax changes.

Statements from Vector confirmed that, since the deferred tax liability reduced, thus there was an increase in the net profit after tax. The estimations have been of $21m for the year to the end of June.

Further, in a move to make the capital contributions taxable from May 20 in the budget, the reduction in the net profit after tax for the 2010 financial year would be an estimated $1m.