The National Assembly approved a proposed amendment to the Finance Act on Tuesday, which aims to introduce a 70% tax on Banks’ substantial foreign exchange profits in 2023.
The Finance Act (amendment) Bill was passed after each chamber reviewed the report from the Joint National Assembly Committees on Finance during the plenary session.
The Chairman of the Senate Committees on Finance, Senator Sani Musa, presented the report to the red chamber, alongside Hon. James Faleke in the House.
The Joint Committee, in its report, noted that “that the banks enjoyed windfall as a result of exchange rate unification policy of the Federal Government.w
“That the windfall was as a result of FX allocation to selected Commercial Banks. The policy does not permit the use of windfall for dividend payments.”
“that the application of the provision of Section 30 of the Principal Act shall take effect from 1st January 2023.
“The levy shall be 70% (for federal government and 30% for banks) on the realized profits from all exchange transactions of Banks.
“Any bank that fails to pay the windfall profit levy to the Service, has not executed the deferred payment agreement as at the time of commencement of the regime, shall be liable to pay the windfall levy withheld or not remitted in addition to a fine of 10% of the levy withheld or not remitted per annum and interest at the prevailing Central Bank of Nigeria, minimum discount rate.”
