Presidential Committee urges Federal Government to Tax FX Transactions on Black Market

The federal government may consider the imposition of excise tax penalties on foreign exchange transactions done outside the official market window as part of the moves to discourage multiple exchange rates (black market) in the country.

The move is one of the twenty recommendations put forward by the Presidential Fiscal Policy and Tax Reform Committee, established by President Bola Tinubu to evaluate and provide guidance on reforms.

The Tax Committee, led by Taiwo Oyedele, proposed a set of “quick win” recommendations, which aim to tackle urgent economic concerns, such as exchange rate management, the consequences of removing fuel subsidies, controlling inflation, and promoting economic growth.

One of these suggestions is the introduction of an excise tax on foreign exchange transactions that occur on the black market.

You can read all the 20 recommendations in the tweet below:

https://twitter.com/taiwoyedele/status/1716901814820331861?t=w2w0ecTCywE6PibXVBN15A&s=19