Finance Act: Removal Of Double Taxation To Stimulate Growth In Real Estate, Others- KPMG 

KPMG has said that the removal of double taxation in the new Finance Act will stimulate growth in securities lending and real estate investment schemes, thereby impacting on the overall growth of the economy.

The bill took effect on February 1, 2020 with the aim of promoting Micro Small and Medium Enterprises, increase the revenue of the government and offer incentives to make the capital market attractive.

The Partner and Head, Tax Regulatory and Peoples Service,  KPMG International Cooperation, Wole Obayomi in a symposium tagged, “Finance Act 2019” which was hosted by the NSE, Lagos on Tuesday said that the bill should be embraced by stakeholders as it is a timely intervention by the federal government to drive economic growth through the promotion of SMEs.

He argued that the new finance bill will prevent double taxation for different sectors of the economy, particularly the in securities lending and the real estate activities.

“Finance Act 2019 is landmark legislation that should be embraced by all stakeholders to ensure it achieves its laudable objectives.

“The removal of multiple tax footprints for securities lending and real estate investment schemes is expected to stimulate activities in those segments of the market.

“The generous incentives for the small and medium enterprises (SMEs) in the Finance Act coupled with the launching of the Growth Board for capital raising by that sector from the Nigerian Stock Exchange, are timely interventions to drive the growth of the economy through the SMEs.

“Overall, the Finance Act 2019 is a welcome development.” Obayomi said.

Meanwhile, the NSE Chief Executive Officer, Oscar N. Onyema the signing of the finance bill into law is a huge achievement for the capital market, adding that the Exchange and the regulatory body, Securities Exchange Commission (SEC), and other stake holders in the capital market have been advocating for favourable tax structure for both the money and capital market.

According to Oyema: “The signing of the Finance Bill into law represents a landmark achievement for the Nigerian capital market.

“Since 2014, the Exchange alongside Securities and Exchange Commission (SEC) as well as other capital market stakeholders have been at the forefront of advocacy with policy-makers and tax authorities for favourable tax structures for primary and secondary markets activities in the Nigerian capital market. The NSE, in its efforts to support the growth of the Nigerian economy.”

The CEO added that the exemption of micro and small enterprises who have an annual revenue of N25 million ($70,000) or less from paying company income tax by the Act is in line with the NSE commitment to encourage growth of SMEs