Traders on the Nigerian Stock Exchange will incur a 5% Value Added Tax on all transactions starting on 25th July. It follows the expiration of the Value Added Tax (Exemption of Commissions on Stock Exchange Transactions) order 2014.
The order was created in 2014 by the former Coordinating Minister of the Economy and Minister of Finance Ngozi Okonjo-Iweala under the Nigerian section 38 of the Value Added Tax (VAT) act. The order became effective on July 25th 2014 and was to operate for five years as part of the Nigerian Government’s policy measures to encourage investments in the Nigerian capital markets.
The Nigerian Stock Exchange plans to charge the VAT despite repeated calls for an extension of the waiver by stakeholders.