Peter Obi, former governor of Anambra State and Labour Party Presidential candidate in 2023 general election, has joined the chorus of dissenting voices, lambasting the government for its decision to impose yet another tax on already struggling Nigerians.
According to Obi, the introduction of the Cybersecurity Levy is “further proof that the government is more interested in milking a dying economy instead of nurturing it to recovery and growth.”
He argues that the new tax, which amounts to multiple taxation on banking transactions, negates the government’s commitment to reduce the number of taxes and streamline the tax system.
Some commentators agreed that, Obi’s criticism is valid, given that the Cybersecurity Levy is a regressive tax that will disproportionately affect low-income earners and small businesses.
Some argues that, the tax is levied on bank transactions, which are already subject to various other taxes, including stamp duties. This means that Nigerians will be paying multiple taxes on the same transactions, further eroding their already dwindling disposable income.
Moreover, the Cybersecurity Levy is a tax on the trading capital of businesses, not their profit. This means that businesses will be taxed on their turnover, regardless of whether they make a profit or not. This will further exacerbate the economic distress faced by many Nigerians, who are already struggling to make ends meet.
Obi also raises a pertinent question about the role of the National Security Adviser (NSA) in collecting revenue. He asks, “And when did the office of the NSA become a revenue collecting centre? And why should that purely national security office receive returns on a specific tax as stated in the new cybersecurity law?”
Peter Obi statement read:
The introduction of yet another tax, in the form of Cybersecurity Levy, on Nigerians who are already suffering severe economic distress is further proof that the government is more interested in milking a dying economy instead of nurturing it to recovery and growth.
This does not only amount to multiple taxation on banking transactions, which are already subject to various other taxes including stamp duties but negates the Government’s avowed commitment to reduce the number of taxes and streamline the tax system.
The imposition of a Cybersecurity Levy on bank transactions is particularly sad given that the tax is on the trading capital of businesses and not on their profit hence will further erode whatever is left of their remaining capital, after the impact of the Naira devaluation and high inflation rate. It is inconceivable to expect the suffering citizens of Nigeria to separately fund all activities of the government. Policies such as this not only impoverish the citizens but make the country’s economic environment less competitive.
At a time when the government should be reducing taxes to curb inflation, the government is instead introducing new taxes. And when did the office of the NSA become a revenue collecting centre?
And why should that purely national security office receive returns on a specific tax as stated in the new cybersecurity law?
GIPHY App Key not set. Please check settings