Leading a group of banking industry representatives, Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, questioned President Bola Tinubu on Wednesday over the Windfall Levy.
After the meeting with the President, Edun spoke to State House media and stated the bankers wanted clarification on the tax system, namely the Windfall Levy that the National Assembly had recently imposed.
He stated that the goal of the federal government was to streamline the tax code by concentrating on collecting earnings and allowing businesses’ capital to expand, according to Mr. Zacch Adedeji, Special Advisor to the President on Revenues.
As an accountant and financial specialist, he claimed that the discussion was amicable, knowledge-based, and data-driven, and that President Tinubu fully participated in the discussion.
According to him, the representatives of the banking sector are expected to share their perspective on the outcome, including assurance of support for the President’s macroeconomic reforms.
Representatives of the banking sector at the meeting included Mr Tony Elumelu, Chairman of the United Bank for Africa (UBA) and Ladi Balogun, Group Chief Executive Officer (GCEO) of the First City Monument Bank (FCMB).
“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 to 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,” said Edun.
Elumelu said it was important to democratise prosperity for Nigerians, and ensure access to a good life for all. He said that the banking sector would support the Windfall Levy, which he said was aimed at alleviating poverty. He stressed the importance of prosperity for majority of Nigerians, where businesses thrived, jobs created, and investors benefit leading to a happier society.
Elumelu was confident that the newly introduced levy would achieve the objective of creating a prosperity for all Nigerians.
“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,” he said.
Similarly, Balogun expressed confidence that the current administration would continue to support all stakeholders in the economy, promoting growth and investment.
He emphasised the importance of the banking sector and investing in the in the public in alignment with the government’s reform agenda. The News Agency reports that the windfall tax was introduced in July under Nigeria’s Finance Act. The Act promises many benefits, which include redistributing unexpected gains into important public services, infrastructure development, healthcare, and education.
