By Providence Obuh

The Federal Government has approved the removal of Value Added Tax on all commissions on capital transactions two years after the announcement, shareholders in this interview speaks on the removal. Excerpts:

Mr. Adebayo Adeleke, Secretary Independent shareholders Association of Nigeria:

It is a welcome development because the more lucrative and attractive we are able to make the stock market, the more we are likely to reap the benefit in the long run, in terms of getting more people to use that medium of economic advancement and long term capital creation.

Where you have too many impositions and taxes and levies it discourages investors but when government is able to give some wavers and incentives, you find out that investors will take advantage of it and they will want to put their money in that economy for a longer period.

We hope that government will go ahead and extend the exemption on dividends because am not sure this exemption will apply to dividend, there is 10 percent withholding tax on dividend, we also wish there will be a review either downward or complete elimination so that investors can be encouraged to put more money in the economy and thereby create more jobs for the people and they will be helping the government to do what it has not been able to do. If you want people to help you do what you cannot do, you create an enabling environment for them and you make the market very attractive.

However, it will impact on the capital market because it will attract more people to invest in that market. You are likely to see more people participate in our market both locally and internationally even as result of this.

Mr. Oderinde Taiwo Proactive Shareholders Association of Nigeria:

To me, it will bring down transaction cost, to me it will encourage investors and a lot of people will now patronize the market, National Association for Proactive Shareholders of Nigeria, our vision is to delight and promote an easy culture, there are lot of bottle neck, hindrances where a lot of people are not really able to come in or fully participate in the capital market.

One of the issues we have raised for a long time has been this issue of cost of transaction, the capital market is one of the highest in the world, how this has been looked into and addressed, I believe will really encourage both the investors and even the stock broking firms. For me is a good development that will impact positively on the capital market.