The five-year Value-Added Tax (VAT) exemption on Stock Exchange transactions which was put in place by former minister of finance Dr Ngozi Okonjo-Iweala, has come to an end.
What it means
Stock exchange transactions were exempt from paying Value added tax ie. Tax on Goods and Service in the bid to encourage participation. However, The reinstatement of VAT means investors would have an additional transaction cost of about N2.5 billion.
Why it matters?
This move might dampen investors interest in Nigeria’s already fragile market.