Stock Exchange to Charge Higher Stamp Duties for Deals

By Sahabi Abdul

The Nigerian Stock Exchange will charge higher stamp duties for transactions from next month, according to a circular issued by the Lagos-based  bourse.

Citing a new policy directive by the Federal Inland Revenue Service,  brokers have been advised to charge stamp duties of 0.08 percent of transaction value as against the previous rate of 0.075 percent with effect from 7 December, the stock exchange said in a circular to dealers on Tuesday seen by

“Dealing members are required to immediately engage their software vendors for the required adjustments to their technology applications, to reflect the 0.08 percent rate ahead of the effective date,” Olufemi Shobanjo, head of brokers and dealers regulation at the stock exchange said in the official directive.

President Muhammadu Buhari’s government has been expanding its tax drive in response to dwindling revenue in recent years, further worsened by the coronavirus pandemic,  which depleted global demand for oil, for long the country’s main source of revenue.

A notice published by the government’s tax agency in July provided a long list of transactions and services for which stamp duties were either introduced or increased.