Federal Government Introduces 25% CGT on Share Sale Gains for Reinvestment in Fixed Income
The Federal Government clarified that a 25% Capital Gains Tax (CGT) on share sale gains would apply if reinvested in fixed income securities. The Chairman of the Presidential Fiscal Policy Tax Reforms Committee, Taiwo Oyedele, explained the new rule at an event organized by the Nigerian Exchange Group (NGX).
The exemption threshold of N150 million annually was mentioned to exclude retail investors. Oyedele highlighted the tax's aim to encourage reinvestment in productive equity capital and support economic growth.
He acknowledged challenges in determining the cost basis for shares sold, especially for long-held investments.
Plus234Feed summary based on reporting from NairaMetrics. Read the original report below.
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