Fg Commences Collection Of Income Tax On Bonds, Short-Term Securities From Today

The federal government will today commence the collection of income tax on bonds, short-term securities.

This followed the expiration of a 2012 gazette which exempted Companies Income Tax CIT from bonds and short-term securities in the past 10 years.

The federal government had in 2012 granted tax waiver on all bonds and debt instruments issued by all tiers of government and corporate entities.

But the Securities and Exchange Commission SEC had last month introduced a 0.025 per cent charge on fixed income Bonds secondary market transactions, which was expected to become effective today.

Reacting to the development, capital market operators which included the Chartered Institute of Stockbrokers CIS and the Association of Securities Dealing Houses of Nigeria ASHON have expressed support for the move by the federal government.

President, Chartered Institute of Stockbrokers CIS, Olatunde Amolegbe said the introduction of the policy by the apex capital regulator would bring significant regulation to the market.

Leave a Reply