ANAN and CITN Advocate for 70% Windfall Tax on Banks’ FX Gains to Boost Government Revenue and Infrastructure Financing

ANAN and CITN Advocate for Windfall Tax on Banks to Boost Government Revenue

In a bid to enhance government revenue for infrastructure projects, education, and healthcare, the Association of National Accountants of Nigeria (ANAN) and the Chartered Institute of Taxation of Nigeria (CITN) have thrown their weight behind the imposition of a 70 percent windfall tax on foreign exchange gains accrued by banks.

During the associations’ 4th Joint Council Retreat in Abuja, President and Chairman of Council CITN, Mr. Samuel Agbeluyi, highlighted the importance of the new tax policy in bolstering national revenue amid ongoing economic challenges. He emphasized that the tax is necessary to ensure a fair distribution of economic benefits, especially as banks have significantly benefited from fluctuations in the FX market.

Agbeluyi likened the windfall tax to a prosperity tax, noting that it is essential for the distribution of income. He urged banks to share their prosperity, especially in times of economic hardship, to support other sectors that may be struggling.

Dr. James Ekerare Neminebor, President and Chairman of the Council of ANAN, also expressed support for the windfall tax, emphasizing the need for a cohesive approach to enhance professional standards in the accounting and taxation fields. He commended President Bola Tinubu’s commitment to overhauling the nation’s tax system and highlighted the recent removal of withholding tax for educational and medical facilities as a positive step for the country.

The retreat also focused on the integration of taxation and accounting functions, with a view to streamlining practices and ensuring that professionals in both fields are well-prepared and certified to handle complex tax and accounting work. Discussions also touched on the importance of enhancing skills and competencies among practitioners, including adapting to technological advancements such as artificial intelligence and robotics in accounting.

Overall, the retreat concluded with a call for greater unity and understanding among professionals in the accounting and taxation sectors. By aligning their efforts and expertise, ANAN and CITN aim to drive progress and elevate the standards of accounting and taxation practices in Nigeria, ultimately contributing to long-term professional and economic goals.