News
One-off windfall tax on banks forex profit, creative revenue initiative for capital projects -TMSG
Joel Ajayi
The one – off windfall tax policy on profits made by banks on foreign exchange revaluation by the President Bola Tinubu administration has been described as a product of ingenuity and creativity.
The Tinubu Media Support Group (TMSG) which made this assertiom said that only a creative mind like President Bola Tinubu could come up with this innovation of one-off windfall tax on profits made by banks from foreign exchange revaluation of 2023.
In a statement signed by its Chairman Emeka Nwankpa and Secretary Dapo Okubanjo, the group added that the government’s decision to deploy proceeds from the tax to infrastructure development is a good way of getting the banks to give back to the society and participate more concretely in national development.
Going down the memory lane, the TMSG recounted that When the Central Bank of Nigeria (CBN) unified the multiple foreign exchange rates last year, it was clear to every discerning Nigerian that commercial banks in the country would make a tidy profit from the policy.
“So it was not a surprise that many of the banks which barely made N5bn in foreign exchange gains in 2022 were posting profits as high as N26bn in their financial statements in the subsequent year.
For example, one of Nigeria’s biggest commercial banks holding company posted a revaluation gain of N441.79bn last year, far outsripping a meagre N57.94bn it recorded in 2022.
“We also have it on good authority that nine of Nigeria’s top banks made over N2tn in the first nine months of 2023 after the CBN floated the naira but the good thing is that they were open enough to declare it as gains from the revaluation of foreign currency-denominated assets and liabilities held in their non-trading books.
“It is a good thing, however, that the President Bola Tinubu administration has deemed it fit to impose a one-time windfall tax of 50% on the banks’ forex gains which, according to provisions of the amendment sought to the Financial Act, would be ploughed into capital infrastructure development, education and health care projects lined up in the Renewed Hope Agenda.
“There is a strong possibility that the Federal Inland Revenue Service (FIRS) will collect in excess of N1tn from the windfall tax and we are convinced that the Tinubu administration will ensure judicious use of the revenue in line with provisions of the proposed amendment to the act.
“We know that some tax and advisory service firms have been expressing concerns about what they consider as drawbacks, but we are opting to look at the positives.
“We see it as a better option to funding the additional N6tn made to the 2024 budget rather than employing measures that will increase the tax burden of the average Nigerian.
“It is a creative endeavor that will still see the banks holding on to half of the massive gains they made at the expense of Nigerians in one year. So it is a win-win situation which will see the banks give back to the society.”
The pro-Tinubu group urged state holders in the banking industry to see the proposed tax as their contribution to national development.
end
News
Pakistan Ambassador To Nigeria Others, Pay Tribute To Martyrs, War Heroes On Defence Day
Tolu Tosin
The Pakistan diplomats in Nigeria have joined the rest of the diplomatic missions of Pakistan across the globe to observe the annual Defence and Martyrs Day paying tribute to the nation’s heroes including the armed forces and martyrs for their unmatched sacrifices and bravery to safeguard the country.
The day we started with a 31-gun salute in the country’s capital, Islamabad, and a 21-gun salute in provincial capitals, followed by prayers, wreath-laying ceremonies at the tombs of martyrs, and special prayers in mosques for the progress and prosperity of the country.
Pakistan on Friday celebrated its 59th Defense Day anniversary to commemorate the sacrifices of fallen heroes who defended the South Asian country.
For any Pakistanis, the day reflects Pakistan’s strong commitment to the defense of sovereignty as many pay tributes to the brave soldiers who thwarted the enemy’s attempts to harm Pakistan.
Speaking in Abuja at an event organized to commemorate the day, the Pakistan Ambassador to Nigeria, Retired Mag.-Gen, Sohail Khan said that the Martyred soldiers are heroes and their sacrifices and dedication cannot be forgotten.According to him, we are celebrating Defence Day to pay homage to the Armed Forces of Pakistan. I will just narrate certain facts for the information of all of you.
“Pakistan Armed Forces stands as the 5th largest standing Armed Forces in the world.
We have been the largest contributors to the UN peacekeeping operations since the 1960s.
“To protect the motherland from internal and external aggression, members of the Armed forces have sacrificed their lives and embraced martyrdom in the Global War Against Terrorism of which Pakistan has been at the forefront since the very beginning.,
“In terms of officers vs troops causality ratio Pakistan Armed Forces are at the top having lost/offered every other 12 ranks.
“Armed forces have always responded to the call of the nation during national calamities, earthquakes, floods, etc. They have been at the forefront of every nation-building and assistance task.
“Pakistan remains an extremely responsible 7th nuclear state in the world. Well-entrenched command and control systems are also being managed by the Armed Forces of Pakistan.
“This occasion is meant to pay homage to our members of the Armed Forces for their dedication and sacrifices.’
Speaking also at the occasion, was Defence Advisor an Attaché of the Pakistani High Commission in Nigeria, Col. Mushtag Kamran Col. Kamran Mushtaq expressed that, the 6th of September signifies the unflinching resolve, unity, and sense of sacrifice to defend the motherland at all cost.
“It is also to pay homage to those sons of the soil who sacrificed their lives to protect our freedom and sovereignty.
“Their actions continue to resonate urging us to strive for a better tomorrow
“Following the legacy of our Great Heroes in unison with the people of Pakistan we remain ever-ready and fully determined to squarely meet all external challenges to protect our ideological and geographical boundaries.
“Today, we bow our heads in reverence and gratitude for martyrs, who have the freedom that engraved their legacy in the anal of history, reminding us of the freedom that we cherish
“Let’s renew our pledge that following the footsteps of our martyrs, we will leave no stone unturned for the defense of our Motherland and we will always work, towards making Pakistan e great country.” He pledged
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