The removal of multiple tax footprints for securities, lending and real estate investment schemes will stimulate activities in different segments of the Nigerian capital market, an expert has said.
Wole Obayomi, partner and head of Tax, Regulatory and People Services at KPMG, said this in Lagos on Monday.
Mr Obayomi spoke at the capital market stakeholders’ symposium hosted by the Nigerian Stock Exchange (NSE) at the Exchange in Lagos. The programme, tagged “Finance Act 2019”, was held in collaboration with KPMG Nigeria to highlight the implications of Nigeria’s Finance Bill 2019 passed into law by the National Assembly in October 2019.
The KPMG partner explained that generous incentives for the small and medium enterprises (SMEs) is a timely intervention that will drive the growth of the economy through the SMEs.
“Finance Act 2019 is landmark legislation that should be embraced by all stakeholders to ensure it achieves its laudable objectives,” he said.
“The removal of multiple tax footprints for securities lending and real estate investment schemes is expected to stimulate activities in those segments of the market. The generous incentives for small and medium enterprises (SMEs) in the Finance Act coupled with the launching of the Growth Board for capital raising by that sector from the Nigerian Stock Exchange, are timely interventions to drive the growth of the economy through the SMEs. Overall, the Finance Act 2019 is a welcome development.”
The Finance Act, which took effect earlier in the year, has the objectives to promote fiscal equity, align domestic laws with global best practices, support MSMEs, increase government revenues and incentivise activities in the capital market.
Also speaking at the event, the Chief Executive Officer of the NSE, Oscar Onyema, said the signing of the Finance Bill into law represents a landmark achievement for the Nigerian capital market.
He said: “Since 2014, the Exchange alongside Securities and Exchange Commission (SEC) as well as other capital market stakeholders have been at the forefront of advocacy with policy-makers and tax authorities for favourable tax structures for primary and secondary markets activities in the Nigerian capital market.
“The NSE, in its efforts to support the growth of the Nigerian economy and its issuers, is, therefore, happy to collaborate with a leading tax expert, KPMG to highlight the implications of these new rules and provide guidance on how to effectively navigate the provisions of the bill, especially as it relates to taxes.”