Tinubu set to fund 6.2 trillion extra budget with tax on banks windfall, forex gains as Senate passes second of ammendment bill
President Bola Tinubu, on Wednesday wrote the Senate to impose a one-time windfall tax on foreign exchange gains realized
and banks windfall profits to fund capital, education and healthcare access as well as public welfare initiatives to give sound and solid footing to Renewed Hope Agenda.
Meanwhile the bills for amendment of 2024 Appropriation Act , 2023 Finance Act passes second Bills for amendment of 2024 Appropriation Act , 2023 Finance Act have passed second reading
The Senate on Wednesday passed for second reading bills for the amendment of 2024 Appropriation Act and 2023 Finance Act.
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This followed the presentation of the general principles of the bills by the Senate Leader, Sen.Opeyemi Bamidele (APC-Ekiti) at plenary on Wednesday.
Bamidele, having moved for suspension of Senate rules 78 to allow for process of second reading, said the bills were first read on July 17,following transmission of the bills to Senate by President Bola Tinubu.
He said the 2024 appropriation act amendment bill sought to amend the authorisation of issuance from the consolidated fund, sum of N3.2trillion for capital expenditure and N3 trillion for recurrent expenditure.
He said the amendments sought in the finance act 2023 was to impose a one time windfall tax on the banks on the foreign exchange gains realised in their 2023 financial statements.
He said the amendment on the finance act was also designed to further provide for general tax administration in the country.
Bamidele said the 2024 appropriation amendment bill was needed to fund renewed hope infrastructure projects and other critical infrastructure projects to be undertaken across the country.
He said the bills were also needed to meet other recurrent expenditure requirements, necessary for proper operations of Federal Government expenditure.
According to him, the expenditures will be funded by expected revenue accruing to the Federal Government of Nigeria.
This, he said would help fund capital infrastructure development, education, health care access and public welfare initiatives.
According to him all of the projects are essential components of the renewed hope agenda of the administration.
Bamidele while lauding the projects emarked, said it would enhance the provision of critical needs of Nigerians.
Sen.Adamu Alero, (PDP-Kebbi), who seconded the motion said it was necessary to support the bill because of the expected minimum wage for workers.
He urged the lawmakers’ to pass the amendment as the bill was required to source the required fund for minimum wage payment and infrastructure projects construction.
“Because there is no money in 2024 budget,if we don’t provide money for the minimum wage this month, there will be public outcry, Nigerians have been patient and have waited.”
Alero commended President Bola Tinubu for the bills, saying that its passage would also help in completion of legacy projects.
Deputy Senate President, Jibrin Barau, who presided over plenary at that moment said the amendment sought in the 2024 appropriation act was designed to provide additional revenue to the 2024 budget revenue profile.
Sen. Seriake Dickson(PDP-Bayelsa) suggested that the bill on amendment of finance act should be stood down , advising on need to seek experts views on proposed imposition of taxes on banks.
Other senators, who supported the bills include Sen.Garuba Maidoki (APC-Kebbi) Adetukunbo Abiru (APC-Lagos), Adams Oshomole (APC-Edo) and Sani Musa )APC -Niger).
Deputy President of Senate, Sen.Barau Jibrin(APC-Kano), after the bills passed second reading referred the bills separately to Senate Committees on Appropriations and Finance for further legislative inputs.
The Committees are to report back to plenary in one week.
