Government Makes N60.11 billion Collecting VAT From Stock Market Transactions.
Written by Smooth FM on August 26, 2019
With the resumption of Value Added Tax (VAT) collection from stock market transactions, investors will return at least N60.11 billion into government coffers in one year. This has drawn criticism from some stakeholders who said it would amount to double taxation.
The Federal Government had in 2014 granted a tax holiday on all stock market transactions, a deliberate attempt at reducing the high cost of transaction in the market and making it more attractive to investors.On the expiration of the tax exemption on July 24, 2019, dealing members were mandated to charge VAT on all commissions applicable to capital market transactions with effect from July 25, 2019.
The estimate, based on the N1.20 trillion total equity turnover of 2018, is in addition to the Withholding Tax (WHT) of 10 per cent applicable to dividend payments in Nigeria. The tax is deducted by the investee company before remittance of dividends to shareholders in line with Section 80 of the Companies Income Tax Act (CITA).
SOURCE: The Guardian
