The Nigerian Stock Exchange (NSE) has received approval for the exemption of Value Added Tax for a period of five years on most transactions
The Federal Government of Nigeria gave the approval to the Nigerian Stock Exchange (NSE) on Monday.
A statement by the NSE said areas of VAT exemptions include earnings on traded values of shares; payable to the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange (NSE) and the Central Securities Clearing System (CSCS).
“Further to the measures announced by the Coordinating Minister of the Economy and Honourable Minister of Finance (CME) Dr. Ngozi Okonjo-Iweala, CFR on December 3, 2012, to resuscitate the Nigerian Capital Market, the Exchange is pleased to learn that the VAT exemption is now effective on all commissions applicable to capital market transactions,” the statement added.
The Exchange’s Chief Executive Officer, Mr. Oscar N. Onyema, was quoted as having applauded the Federal Government for implementing the policy, saying, “this is one of the measures announced by the Honourable CME in December 2012 and it is a demonstration that the Capital Market is a key component of the Federal Government’s transformation agenda.”
He said investments should not be categorized as consumer goods purchases, but as a platform to promote a long term savings culture that could be channelled towards economic growth and development.
“The elimination of VAT on stock market transaction fees will ultimately reduce the cost of transactions for investors, and will encourage investments in the Nigerian Capital Market,” he stated.
He further revealed that the stamp duty waiver, which was also announced in 2012 by the Honourable Minister, is yet to be implemented.
He expressed confidence that the Federal Government will expedite the implementation process in the interest of investors in the Nigerian Capital Market, which is an important engine of growth for the Nigerian economy.