The Federal Government on Tuesday began the collection of income tax on bonds, short-term securities, following the expiration of a 2012 gazette that exempted Companies Income Tax (CIT) from bonds and short-term securities in the past 10 years.
In 2012 the Federal Government granted tax waiver on all bonds and debt instruments issued by all tiers of government and corporate entities.
As the expiration date got closer, in December 2021, the Securities and Exchange Commission (SEC) in a circular said: “It will charge 0.025 per cent of the total value of all secondary market transactions on bonds, while the Securities Exchange on which the transaction occurs will charge an amount not exceeding 0.025 per cent of the total value of secondary market transactions on bonds while bond transactions by dealing members will attract a single regulatory fee of 0.0001per cent of the total value of the secondary market transactions on bonds, and are exempt from the 0.025 percent fee charge earlier stated.”
The charges are expected to commence today.
Reacting to the development, President of Chartered Institute of Stockbrokers (CIS), Olatunde Amolegbe, said the introduction of the policy would bring significant regulation to the market.
