FG To Halt 5% VAT On Capital Market Transactions
Yemi Osinbajo (image courtesy NAN)

The Federal Government has disclosed plans to exempt the capital market from stamp duties collection and the 5 per cent Value Added Tax (VAT).

The Vice President, Prof. Yemi Osibanjo, revealed this while speaking at the Awards Night of the Association of Issuing Houses of Nigeria in Lagos.

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The former Minister of Finance, Dr Ngozi Okonjo-Iweala, had previously exempted the capital market in 2014 for five years to lure investors into the country and boost trading activities in the sector.

However, the waiver ended on July 24, 2019, with stakeholders clamouring for an extension.

Osibanjo, who was represented by the acting Director-General, Securities and Exchange Commission, Ms Mary Uduk, said: “We have commenced work on other aspects of the Capital Market Master Plan Implementation Council’s requests that require government intervention.

“We will be collaborating with many of you in the capital market community to successfully address them. My office is actually represented on the CAMMIC. I will, therefore, be receiving periodic reports on suggestions to further strengthen our support of your efforts and the market as a whole.

“We all desire a capital market that will broaden access to economic prosperity by enabling the emergence of financially responsible citizens, accelerating wealth creation and wealth distribution, providing capital to small and medium scale enterprises, and catalysing housing finance,” the vice president said.

The Vice President further noted that VAT and other issues were being discussed and that a resolution would be announced very soon.

“We see the capital market as an important driver of our growth agenda and we will continue to collaborate with the capital market community to support its efforts to positioning our market to where it should be.

“This administration, and especially my office, has supported the 10-year Capital Market Master Plan implementation initiatives since inception in 2015.

“The AIHN is an important player in the Nigerian capital market and I commend its members for directly contributing to the economy by aggregating the much-needed funding to support entities in the private and public sectors.”