The Nigerian Stock Exchange Has Announced that the Minister of Finance has now made effective an exemption on all commissions applicable to capital market transactions. For example, you typically pay VAT on commissions for CSCS Fees when you buy or sell shares. Based on this directive, you will no longer pay VAT. See extract of the press release below;
Further to the measures announced by the Coordinating Minister of the Economy and Honourable Minister of Finance (CME) Dr. Ngozi Okonjo-Iweala, CFR on December 3, 2012, to resuscitate the Nigerian Capital Market, The Exchange is pleased to learn that the VAT exemption is now effective on all commissions applicable to capital market transactions. These are commissions: (a) earned on traded values of shares, and (b) payable to the Securities and Exchange Commission (SEC), The Nigerian Stock Exchange (NSE) and the Central Securities Clearing System (CSCS). The exemption is effective for a period of five years according to the Federal Government gazette on the issue.The Exchange’s Chief Executive Officer, Mr. Oscar N. Onyema, OON, applauded the Federal Government for implementing the elimination of VAT on stock market transaction fees. He stated that this is one of the measures announced by the Honourable CME in December 2012 andit is a demonstration that the Capital Market is a key component of the Federal Government’s transformation agenda.According to Mr. Onyema, investments should not be categorized as consumer goods purchases, but as a platform to promote a long term savings culture that could be channeled towards economic growth and development. Mr. Onyema added that “the elimination of VAT on stock market transaction fees will ultimately reduce the cost of transactions for investors, and will encourage investments in the Nigerian Capital Market”.
