The Nigerian government plans to implement a 50 percent tax on the profits banks earned from foreign exchange revaluation in 2023 to fund an increase in workers’ minimum wage.
This comes as President Bola Tinubu on Wednesday submitted proposed changes to the 2023 Finance Act to the National Assembly for approval.
An All Progressives Congress member, Imran Muhammed, disclosed this in a post on Wednesday.
“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.”
NewsNow reports 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 to include a windfall tax on Foreign exchange gains by Nigerian banks.
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.
Recall that on June 14, 2023, the Central Bank of Nigeria floated the Naira at the foreign exchange market which led to the devaluation of the country’s currency.