Bureau De Change Operators And Banks Bicker Over Tax Remittance
Foreign exchange dealers in Nigeria have a score to settle with Nigerian banks.
The FX dealers under the aegis of the Association of Bureau De Change Operators of Nigeria, ABCON are kicking against ongoing banks’ suspension of bureau de change accounts, demanding for tax remittances on turnover volumes.
In a statement on Thursday, the President, ABCON, Alhaji Aminu Gwadabe, said banks were acting under the directive of the Federal Inland Revenue Service, FIRS to demand that the BDCs pay taxes on funds used to bid for their dollar allocations sent to the Central Bank of Nigeria on a weekly basis through the commercial banks.
The ABCON boss said many banks had written to the BDC operators and were implementing a ‘Post No Debit’ order on the operators’ accounts even where there was no evidence of tax default.
“The BDCs are high turnover sector and their funding cash for dollar collections cannot be subjected to taxes. An average BDC does over 30-million-naira weekly turnover and paying taxes on such funds will affect their cash flow and ability to meet their statutory role of foreign exchange supply to the retail-end of the market,” he said.
He added that many of the affected BDC operators were already facing major funding challenges that needed to be addressed immediately by concerned stakeholders.
“In fact, we will be writing to the Central Bank of Nigeria to complain about the illegal policy of the ‘Post No Debit’.
''Presently, most of our members funding with the Deposit Money Banks for their bidding obligations are being trapped in the banks.
''This scenario, if not checked, will affect our members’ funding capacity, derail the sustainability of their businesses with the resultant liquidity spikes,” he said.
Don't forget to share this story with your friends