The presidential candidate of the Labour Get together in the 2023 general elections, Peter Obi, has decried the newly introduced Cyber security Levy by the President Bola Tinubu-led Nigerian government.
Obi said the taxes the current administration of Tinubu had imposed on Nigerians are too many and aimed at milking a dying economy.
SaharaReporters reported on May 7, that the Central Bank of Nigeria (CBN) has directed deposit money banks within the country to start charging 0.5% cybersecurity levy on transactions.
The apex financial institution gave the directive in a circular dated May 6, 2024 addressed to all business, service provider, non-interest and fee service banks in addition to cell money operators and payment service providers.
“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuant to the availability of Section 44 (2) (a) of the Act, ‘a levy of 0.5% (0.005) equal to a half % of all digital transactions worth by the business specified within the Second Schedule of the Act’, is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA),” the round partly read.
CBN, nonetheless, famous that the implementation of the levy would begin two weeks from the date of the round.
“The levy shall be utilized on the level of digital switch origination, then deducted and remitted by the financial institution. The deducted quantity shall be mirrored within the buyer’s account with the narration, ‘Cybersecurity Levy’.
Nevertheless, reacting to the brand new tax imposition on Nigerians, on his official social media web page, the previous Anambra State Governor, stated as a substitute of nurturing the restoration and development of the economic system, the government by its a number of taxation is extra involved in heaping extra burden on the people who are already struggling extreme economic stress.
Obi wrote: “The introduction of yet one more tax, within the type of Cybersecurity Levy, on Nigerians who’re already suffering severe economic distress is additional proof that the government is more involved in milking a dying economy as a substitute of nurturing it to recovery and growth.
“This doesn’t solely quantity to a number of taxation on banking transactions, that are already topic to numerous different taxes together with stamp duties however negates the Government’s avowed commitment to reduce the variety of taxes and streamline the tax system.
“The imposition of a Cybersecurity Levy on bank transactions is especially unhappy on condition that the tax is on the trading capital of companies and never on their revenue therefore will additional erode no matter is left of their remaining capital, after the influence of the Naira devaluation excessive inflation fee. It’s inconceivable to anticipate the struggling residents of Nigeria to individually fund all activities of the government.
“Insurance policies similar to this not only impoverish the residents however make the nation’s financial atmosphere much less competitive.
“At a time when the government must be reducing taxes to curb inflation, the government is as a substitute introducing new taxes. And when did the workplace of the NSA turn into a revenue-collecting center?
“And why ought to that purely national safety office obtain returns on a selected tax as said within the new cybersecurity law?”
