There are talks to review the controversial Capital Gains Tax (CGT) ahead of its implementation next January, according to Wale Edun, Minister of Finance and the coordinating minister of the economy.
Edun said the CGT, a part of a series of tax reform measures by the government, which have generated concerns from investors and brokers alike, would be looked into to allow “optimum results”.
“We have heard what you have said about capital gains tax. We are looking at it. We will listen. We will analyse. We will discuss and we will, at the end of it, decide, and hopefully we will decide what is best for Nigeria,” Edun said at the listing of the MOFI Real Estate Investment Fund on the Nigerian Exchange on Tuesday.
Nigeria is tripling capital gains tax for foreign equity investors from 10 percent, a move analysts say is likely the reason for the bearish trend in the market that has shed about 8 percent in one week.
Edun’s guidance for a likely review is expected to usher in a turnaround for the market and allay fears that have seen the market in red recently, even though it’s up about 40 percent since January.
