Home Finance Operators seek speedy implementation of new policy on VAT, stamp duty

Operators seek speedy implementation of new policy on VAT, stamp duty

by Business News Report

Some Nigeria capital market operators on Monday urged the Federal Government to immediately implement its policy to stop stamp duty and Value Added Tax (VAT) on transactions in the nation’s bourse.
They said that the implementation of the policy, as announced on Dec. 3, would aid capital market recovery. Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that the Federal Government should gazette the policy for it to be effective. “It is our hope that all those concerned in the implementation of the policy will see it done before the end of the year,” he said. Kurfi, who described the announcement as a welcome development, said that it would reduce the cost of transactions by at least 12 per cent. Mr Emeka Madubuike, the Managing Director of Compass Securities Ltd., said that effective implementation of the policy would boost activities in the capital market.

Madubuike said that the Transformation Agenda of the government would not be achieved if the capital market was excluded from the agenda. Mr Sehinde Adenagbe, the Managing Director of Standard Union Securities Ltd., also urged the Federal Government to hasten its privatisation exercise. Adenagbe said that government should ensure that privatised companies were listed on the Nigerian Stock Exchange. The Federal Government on Dec.3 announced the elimination of stamp duties and VAT fees on stock market transactions as part of measures to boost activities in the market.
Meanwhile, the Nigerian stock Exchange recorded a turnover of 1.14 billion shares worth N11.24 billion in 18,947 deals last week. This was against the 1.22 billion shares worth N8.89 billion traded in 18,902 deals in the preceding week. The financial services sector was the most active with 872.71 million shares worth N6.80 billion traded in 11,398 deals. It was followed by consumer goods sub-sector, which accounted for 75,609 million shares valued at N3.12 billion traded in 3,812 deals.

The All-Share Index also appreciated by 0.67 per cent to close at 26,671.72 as against the 26,494.44 posted in the corresponding week. Similarly, the market capitalisation, which opened at N8.47 trillion rose by 0.67 per cent to close at N8.52 trillion. Guinness led the gainers’ chart with N10.91 to close at N241.10 per share. It was followed by Nestle with a gain of N9.94 to close at N660.05 per share. On the other hand, Mobil topped the losers’ chart, dropping N5.75 to close at N109.25 per share. It was trailed by Total with a loss of N3 to close at N121.68 per share.

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