The Chairman of the United Bank for Africa (UBA), Mr. Tony Elumelu has rendered his support for the recently passed windfall tax on the foreign exchange revaluation gains of commercial banks.
He stated this while addressing members of the press yesterday afternoon after a visit to President Tinubu at the State House, in Abuja.
Elumelu emphasized the importance of democratizing prosperity for Nigerians and ensuring access to a good life for everyone and noted banking sector would support the Windfall Levy, which aims to alleviate poverty.
He explained the significance of widespread prosperity, where thriving businesses, job creation, and investor benefits contribute to a happier society and that the newly introduced levy would succeed in creating prosperity for all Nigerians.
He said, “We believe in prosperity. We believe in creating jobs and employment for our people. We believe in making sure that we democratise prosperity and that Nigerians have access to good life. So, today we spoke about the Windfall Tax. We support the government.”
“We believe that where there is extraordinary income, it should go towards helping to alleviate poverty in the country, which is what the government intends to do,”
Mr. Elumelu was accompanied by the Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji and Minister of Finance, Wale Edun as well as representatives from the banking community to seek insights into the 70% windfall tax.
Government will tax profits, not capital
Mr. Edun mentioned that Mr. Zacch Adedeji, the Special Adviser to the President on Revenues, stated the Federal Government’s intention to simplify the tax regime by focusing on taxing profits while allowing companies’ capital to grow.
He noted that the meeting was conducted in a friendly atmosphere, was knowledge-based, and data-driven. President Tinubu, being an accountant and financial expert, actively engaged in the discussion.
He added that representatives of the banking sector are expected to share their perspectives on the meeting’s outcome, including their assurance of support for the President’s macroeconomic reforms.
In his words, “The Chairman of FIRS gave some insight, particularly into the fact that under President Bola Tinubu, the idea is to simplify the tax regime, as much as possible.”
“The government intends to make the tax regime more efficient and less costly for people to even file their taxes and critically to focus on the wealth that’s created.”
“We will not focus on the companies that are not doing so well, or focus on their capital. We will leave their capital to grow and make sure that the emphasis is on taxing and levying only the returns, only the profits,”
