FG increases windfall tax on banks to 70% in amended finance act

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Indonesia Berita Berita

Indonesia Berita Terbaru,Indonesia Berita utama

The house of representatives has passed the 2023 Finance Act to increase the one-time windfall tax on banks’ foreign exchange (FX) gains to 70 percent.

Federal government has increased the windfall tax on banks’ foreign exchange gains to 70 percent — from the proposed 50 percent — in the amended Finance Act of 2024.

According to the amended Act, passed by the green chamber, “a levy of 70 percent on the realised profits from all FX transactions of banks within the 2023 to 2025 financial years would be levied and paid to the benefit of the federal government”. The finance Act said any bank that fails to pay the windfall tax to the service and has not executed a deferred payment agreement before December 31, “commits an offence”.

 

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