The Chairman, Edgefield Capital Management Limited, Gboyega Isiaka, has advised the Federal Government to exercise caution and reconsider the reintroduction of capital gains tax to capital markets securities and instruments.
A statement said he gave this advice while making his contribution to the session on Finance Act 2021: Capital gains tax, at the 26th annual conference of the Chartered Institute of Stockbrokers, in Benin City, Edo State.
He stated that while the measure may enhance the revenue of 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.
Speaking at the conference themed ‘Capital market and agricultural development in Nigeria: Issues and the way forward’, Isiaka said whatever was 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 were arguments for and against payments of taxes on gains arising from disposal of shares and other capital market instruments, the investment mogul said, “The ultimate objectives should be fiscal policies that promotes economic growth in the medium to long term.”
At the conference, the President of the institute, Mr Wole Adeosun, requested for the suspension of the reintroduction of the capital gain tax.
“The market is still not out of the woods”, he said.
Other speakers, such as the Director-General, Securities and Exchange Commission, Mr Lamido Yuguda, and Edo State Governor, Godwin Obaseki, represented by his Head of Service, Anthony Okungbowa, said investment in agriculture would facilitate the nation’s diversification exercise, job creation and socio-economic development.
The 2022 annual conference beamed a searchlight on exploring agricultural sector and the capital market as drivers of employment and economic growth in order to restore Nigeria on the path of double-digit growth in Gross Domestic Product.
