FG Considers Reduction In Company Income Tax, Others

The federal government may consider reduction in Company Income Tax (CIT) and other taxes relating to the capital market from 25 per cent to 20 per cent. However, the reduction will be on a case-by-case basis, based on the merit of the company seeking such reduction.

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed made the disclosure in Abuja when the management of Nigeria Exchange (NGX) Limited visited her.

According to her, the requests for a reduction in Company Income Tax came at the appropriate time when the Ministry was working on the Finance Bill 2021.

She added that the federal government has ordered the Securities and Exchange Commission (SEC) to design saving policy and programmes that will encourage Nigerians to participate in the capital market, as part of measures to further unlock the potentials of the capital market.

While commending the NGX for demutualising the exchange and deepening the capital market, Ahmed called on the management of NGX to leverage on technology and innovations which could ease the processes of trading on the exchange and ensure that ordinary citizens could participate in the capital market.

Chief Executive Officer, Nigerian Exchange (NGX) Limited, Temi Popoola assured the minister of the Exchange’s support for government’s efforts to make Nigeria a destination for foreign investment as well as attracting investors.

Popoola sought for a reduction in Company Income Tax (CIT) from 25 to 20 per cent, among others, arguing that these would ultimately attract more taxes to government.

He assured the minister of the exchange’s commitment to support the ministry’s fiscal policy and willingness to serve on the committee of the Finance Bill 2021.