- Implementation of the 70% windfall tax on banks’ foreign exchange gains faces setbacks.
- Uncertainty over retroactive application and calculation methods adds to challenges.
Lagos, Nigeria – Nigeria’s recently enacted law imposing a 70% tax on windfall income earned by banks from the naira’s sharp depreciation is off to a rocky start, with implementation missing its January 1 deadline. Approved by the Senate last July as a one-off levy, the tax rate was doubled from the government’s initial proposal following parliamentary adjustments.
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