The Chairman of Edgefield Capital Management Limited, Prince Gboyega Isiaka has advised the Federal Government to exercise caution and reconsider the reintroduction of Capital Gains Tax to Capital markets securities and instruments.
He made this point during his contribution to the session on Finance Act 2021:Capital Gains tax, at the just concluded 26th Annual Conference of the Chartered Institute of Stockbrokers (CIS) which was held in Benin City, Edo State.
He posited that while the measure may enhance the revenue of the government on the short run, its impact on discouraging capital investment, venture capital, and entrepreneurial moves, should be considered in arriving at an optimal policy.
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Speaking further in the conference themed “Capital Market and Agricultural Development in Nigeria: Issues and the Way Forward”, Isiaka added that whatever is eventually collectible should be directed at enhancing the infrastructure in the capital market for future growth of the market and the economy.
While acknowledging the fact that there are arguments for and against payments of taxes on gains arising from the disposal of shares and other capital market instruments, the Investment mogul opined that “The ultimate objectives should be fiscal policies that promote economic growth in the medium to long term”.
Earlier in the conference, the President of the institute, Mr. Wole Adeosun, requested for the suspension of the reintroduction of the capital gain tax saying, “The market is still not out of the woods”; a contrary position to the FBIR that believes the tax is needed.