‘Ailing’ Stockbrokers Call For Exemption From Stamp Duty On Stocks’ Transaction

Stockbrokers, already battered by a bearish stock market yesterday called for the exemption of stamp duty on cost of transaction on the floor of the Nigerian Stock Exchange (NSE).
The Central Bank of Nigeria recently introduced the policy, which was contained in the Stamp Duty Act, 2004 and the Federal Government of Nigeria’s Financial Regulation of 2009.
It will be recalled that the former Coordinating Minister for the Economy and the Finance Minister, Dr. Ngozi Okonjo-Iweala in December 2012 announced measures aimed at giving impetus to the Nigerian Capital Market by lowering the cost of engagements though the elimination of stamp duties and VAT on stock market transaction fees. 
Speaking yesterday to media, the acting president chartered Institute of Stockbroker (CIS), Mr. Oluwaseyi Abe said, “Stamp duty will not drive participation of investors in the market because, it is an added cost.”
He pointed out that “The government is in difficult position presently, we have rely on oil in the past and the government  looking inward to generate revenue. It is just an unfortunate development that we have a cashlog of series of event happening in the country at the same time. Otherwise this is not the right time for such policy.”
He pointed out that  the government is suppose to work closely with the operators to activate capital market and to tap into the full benefits of the capital market.
“Part of the solution we have said to the government is that let us increase our local investors participation in the capital market,” he said.
Also the president of Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike said, “It will be recalled that in 2014/2015, we canvassed as past of reducing the cost of doing business in Nigeria, the elimination of stamp duty and VAT. 
“During the period we were able to get the government eliminate VAT on capital market transaction and as we speak today there is no VAT charge on capital market transaction. So our position as far as this is concern is a situation where if the policy is sustained it will increase the cost of doing business in the capital market.” 
According to Madubuike, from the capital market point of view what we will canvass for is that capital market transaction should be exempted from this policy in line with what we have canvassed since 2014 because comparing Nigerian capital market with others market, the cost of doing business in the Nigerian capital market is on the high side.

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