Banks to pay tax on forex business gains

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The Nation Newspaper Banks to pay tax on forex business gains

yesterday passed for second reading an Executive Bill seeking to tax the windfall made by banks from foreign exchange business.The one-time tax will be used to finance capital infrastructure development, education, healthcare and other welfare initiatives, according to the Federal Government.

The amendment is to provide for an additional N3.2 trillion for projects and N3 trillion for recurrent expenditure. “Furthermore, the proposed amendments to the Finance Acts 2023 are required for a one-time windfall tax on the foreign exchange gains realised by banks in their 2023 financial statements to fund capital infrastructure development, education, and healthcare as well as welfare initiatives, all of which are components of the Renewed Hope Agenda,” he stated.They referred them to the relevant standing committees for further legislative action.

Deputy Senate President Barau Jibrin said part of the additional funds sought would be used to finance the minimum wage which is expected to arrive in the National Assembly before the end of July. He recalled the backlash from the public over a bill he said was previously passed hastily, noting that legislators should avoid public ridicule in the handling of legislative activities.

“Let it not be that we pass them without the experts and critical stakeholders participating in public hearings.

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