Two senior officials of the Federal Government on Monday defended the move by the present administration to tax profits by banks arising from foreign exchange transactions.

The Federal Government’s move on one-off tax is contained in the the proposed amendment to the 2023 Finance Act before the National Assembly.

Speaking at the joint session of the National Assembly Committee on Finance chaired by Senator Sani Musa, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun and the Chairman of the Federal Inland Revenue (FIRS), Zach Adedeji, told the lawmakers that there was nothing untoward in the federal government intention as they both described it as normal.

Edun told the Committee that it was normal global practise to redistribute such profit to benefit the poor.

In his own submission, Adedeji, declared that taxing windfalls from banks would go a long way in balancing the economic inequality in the country especially after the government introduced its harmonization policy of the foreign exchange market.

On concern by finance and capital market operators that the proposed tax could instigate a deft move by banks to under declare profit, the Finance Minister urged the lawmakers to give the banks management benefit of doubt.

He also allayed fears that banks could ultimately push the cost to the customers .

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