By Itohan Abara-Laserian
Lagos, Dec. 3, 2020 The Nigerian Stock Exchange (NSE) has announced that the revised Stamp Duty on securities transactions to 0.08 per cent from 0.075 per cent, will take effect from Dec. 7.
This is contained in a notice by the NSE made available to journalists on Thursday in Lagos.
According to the notice, the change is necessitated by the classification of Contract Notes as an ad valorem tax by the Federal Inland Revenue Service (FIRS).
The notice read in part: “As a responsive self-regulatory organisation, the NSE is committed to enforcing rules and ensuring compliance with regulations and other applicable government requirements.
“While it had maintained a stamp duty rate of 0.075 per cent in line with what was obtainable in the Nigerian capital market, it is imperative that the FIRS’ stamp duty regime of 0.08 per cent on securities transactions is applied.
“To this end, the Central Securities Clearing System Plc (CSCS) will adjust its system to implement the automated deduction of the Stamp Duty rate of 0.08 per cent from Monday, Dec. 7.
“The Exchange has also issued the requisite guidance to Dealing Member Firms to put in place the necessary measures to ensure compliance and communicate this change to investors in a timely manner.
“Capital market stakeholders requiring further information can refer to the market circular issued by the Exchange on 17 November captioned “Administration of Stamp Duty on Securities Transactions”, which can be accessed on NSE’s website.
“Investors are also advised to contact their respective stockbrokers for more information or clarification,” it read.