Review of 70% Windfall Tax on Banks. Bank directors in Nigeria have called on the National Assembly to revisit the recently imposed 70% windfall tax on commercial banks, urging lawmakers to engage with the banking sector to amend the policy.
The Bank Directors Association of Nigeria (BDAN) expressed concern over the heavy tax burden, describing it as excessively high and poorly timed, especially considering ongoing bank recapitalization efforts.
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BDAN Chairman, Mustafa Chike-Obi, emphasized that while banks respect the government’s intentions, the tax could hinder growth and innovation within the sector, ultimately affecting the quality of services provided to customers and the broader economy.
He also pointed out the high level of taxation already faced by Nigerian banks compared to their global counterparts.
Nigerian Bank Directors Call for Review of 70% Windfall Tax on Banks: Call for Dialogue Ensues
Chike-Obi called for open dialogue between stakeholders to ensure that the policies are equitable and effective, noting ambiguities in the amendment that leave critical questions unanswered, such as how the windfall tax will be calculated alongside existing taxes like Company Income Tax and Tertiary Education Tax.
He urged the government to provide clear guidelines to avoid further uncertainty.
Additionally, Chike-Obi advocated for the consolidation of all taxes and levies imposed on banks to prevent arbitrary taxation in the future.
BDAN is urging the National Assembly to engage in constructive discussions with the banking sector to develop a framework that balances revenue generation with the need to foster a thriving banking environment that supports sustainable economic growth.
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