The Securities and Exchange Commission (SEC) has said that it is engaging with the federal government to reconsider the exemption of tax on corporate bonds and short-term securities. The federal government had on January 2022 commenced the collection of income tax on bonds, short-term securities, following the expiration of a 2012 gazette, which exempted Companies Income Tax (CIT) from bonds and short-term securities in the last 10 years.  Speaking at a virtual meeting with journalists on the outcome of the second Capital Market Committee (CMC) meeting in 2022, the Director-General of SEC, Yuguda Lamido, stated that the commission is still engaging with the Honourable Minister of Finance, Budget and National Planning on the request for tax exemption on corporate bonds and short-term securities. According to him, “We believe that tax exemption should return to the capital market. Stakeholders also agree with this. Therefore, the commission continues its engagement with the Honourable Minister of Finance, Budget and National Planning on the request for tax exemption for corporate bonds.” On its impact on the corporate bonds transactions, Lamido noted that tax, among others are key considering factors to invest in any asset classes.  He explained that, “Tax is only one part of considerations in investing in any asset classes.

THISDAY