The Securities and Exchange Commission (SEC) has urged the federal government to consider its proposal to exempt corporate bonds from the payment of tax.
Director General of the Securities and Exchange Commission (SEC), Lamido A. Yuguda, made this known at a virtual meeting of the SEC Capital Market Committee.
The SEC Boss said the Federal Government had in 2012 exempted bonds and short-term government securities from income tax for 10 years, which expired on January 1, 2022.
Addressing the issue of tax on corporate bonds, Yuguda said the decision to seek tax exemption would help to unlock the attractiveness of the corporate bond market.
He said: “The commission continues its engagement with the Minister of Finance, Budget and National Planning on the request for tax exemption for corporate bonds. For any asset class, the investment is a function of many considerations. Tax is just one of those considerations. Although it is only one, it is an important consideration especially when the tax rate is high.”