The stock market will begin implementation of the new Value Added Tax (VAT) rate of 7.5 per cent on February 1.
In a circular to stockbroking firms on Wednesday, the Nigerian Stock Exchange (NSE) indicated that with effect from February 1, VAT charged on commissions applicable to capital market transactions will increase from five per cent to 7.5 per cent.
The Nation meanwhile reported that the actual implementation will be on Monday February 3, 2020, the first trading session after the effective date of the new VAT rate.
The VAT will apply to commissions earned by stockbroking firms on the traded value of shares as well as those payable to the Nigerian Stock Exchange (NSE) and the Central Securities Clearing System Plc. (CSCS).
The Exchange urged stockbroking firms to engage their software vendors for the amendment of their systems to reflect the increase in the VAT rate, and communicate to their clients ahead of the effective date.