FG removes VAT on capital market transaction fees

The Federal Government on Monday removed Value Added Tax (VAT) on commissions applicable to capital market transactions.

The government had, two years ago, announced that it would remove the VAT.

Oscar Onyema, the chief executive officer of the Nigerian Stock Exchange (NSE), made this known in a statement issued in Lagos.

A copy of the statement was made available to the News Agency of Nigeria (NAN).

Onyema said that the NSE was delighted to know that the VAT exemption had been effected on all commissions applicable to capital market transactions.

He said that such commissions were earned on traded values of shares payable to the Securities and Exchange Commission, NSE and the Central Securities Clearing System.

Onyema quoted a Federal Government gazette as saying that the exemption would be for five years.

He commended the Federal Government for the gesture.

The NSE boss said that investments should not be categorised as consumer goods but as a platform to promote a long-term savings culture channelled toward economic growth.

Source : BusinessDay

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