The be able to fund the recently approved new minimum wage by President Bola Ahmed Tinubu, the Federal Government has planned to implement a 50 per cent tax on the profits banks make from foreign exchange revaluation in 2023.
This was contained in the proposed changes President Bola Tinubu submitted to the 2023 Finance Act to the National Assembly for approval on Wednesday.
This was disclosed on Wednesday by All Progressives Congress, APC member, Imran Muhammed, in a post.
He wrote, “The Government intends to implement a 50 percent tax on the profits that banks earn from foreign exchange revaluation in the year 2023.
“There shall be levied and paid to the benefit of the Federal Government of Nigeria a tax of 50 percent on the realized profits from all foreign exchange transactions of banks within the 2023 financial year.”
Recall that on Wednesday, Tinubu proposed a N6.2 trillion 2024 supplementary budget. The Proposal which passed second reading at the Senate on Wednesday contained an amendment to the 2023 Finance Act. This includes a windfall tax on foreign exchange gains by Nigerian banks.
Presenting the budget, the Government said the tax would be used to fund the supplementary budget. Which includes N3 trillion recurrent expenditure and N3.2 trillion capital expenditure.
“The N3 trillion recurrent expenditure is expected to tackle the country’s minimum wage impasse,” DAILY POST report.
Recall that on June 14, 2023, the Central Bank of Nigeria, CBN, floated the Naira at the foreign exchange market. And this led to the devaluation of the Naira against foreign currencies.
source: Daily Post
Follow us for more news on our WhatsApp News Channels @
https://whatsapp.com/channel/0029VaC505jB4hdZ5Yx9g82U