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New Stamp Duty takes effect —NSE

By Francis Akinnodi

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The Nigerian Stock Exchange (NSE) has announced that beginning from today, Monday, December 7, the Stamp Duty rate of 0.08 per cent on Security transactions in the market will be implemented.
The Hope reports that the new duty was revised from 0.075 per cent previous charge.
According to the NSE, the change was necessitated by the classification of Contract Notes as an ad-valorem tax by the Federal Inland Revenue Service (FIRS).
“As a responsive self-regulatory organisation, the NSE is committed to enforcing rules and ensuring compliance with regulations and other applicable government requirements.
“While it had maintained a stamp duty rate of 0.075 per cent in line with what was obtainable in the Nigerian capital market, it is imperative that the FIRS’ stamp duty regime of 0.08 per cent on securities transactions is applied.
“To this end, the Central Securities Clearing System Plc (CSCS) will adjust its system to implement the automated deduction of the Stamp Duty rate of 0.08 per cent from Monday, 7 December 2020.”
The Exchange explained that it had also issued the requisite guidance to Dealing Member Firms to put in place the necessary measures to ensure compliance and communicate this change to investors in a timely manner.
Meanwhile, trading at the stock market closed on negative note following sell pressure on Tier 1 banks, United Bank for Africa Plc, Guaranty Trust Bank Plc and Zenith Bank Plc. The NSE All-Share Index fell 0.3 per cent to close at 34,968.94.
The total volume of trades decreased by 21.5 per cent to 289.39 million shares, valued at N7.35 billion, and exchanged in 4,878 deals. UBA was the most traded stock by volume at 34.45 million shares while MTN Nigeria was the most traded stock by value at N4.38 billion.
Performance across sectors was broadly negative, as three of sector monitored indices declined. NSE Banking Index led the decliners with 2.1 per cent, trailed by the NSE Insurance Index that went down by 0.8 per cent. The NSE Consumer Goods Index shed 0.2 per cent. However, the NSE Oil & Gas Index appreciated by 0.4 per cent.
A total of 25 stocks depreciated compared with 13 that appreciated. The price losers were led by Unity Bank Plc with 9.8 per cent, trailed by Chams Plc with 8.0 per cent. NAHCO Plc shed 6.8 per cent just as ETI Plc dipped by 6.3 per cent among others.

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