Mr Peter Obi, the 2023 Presidential Candidate of the Labour Party (LP), has faulted the newly introduced cyber security levy, saying it would negatively affect the economy. Obi, described the newly introduced cyber security levy by the President Bola Tinubu-led Federal Government, as one tax too many.
The former Anambra State governor said this in a series of tweets on his X handle, on Wednesday.
According to him, instead of nurturing the economy back to health and growth, the current administration with its multiple taxations, is more interested in heaping additional burdens on Nigerians who are already under severe economic stress.
Obi said, “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.
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“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 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
Also, in a statement by his spokesperson, Dr Yunusa Tanko, on Wednesday in Awka, Obi said that the focus should shift to nurturing and fully recovering the economy as multiple taxation with the many challenges in the nation would worsen the economy.
Obi said the cyber levy which was on trading capital of businesses and not on their profit would further erode capital.
According to him, this does not only amount to multiple taxation on banking transactions, which are already subject to various other taxes including stamp duties.
“But this negates the commitment to reduce the number of taxes and streamline the tax system. The levy is on the trading capital of businesses and not on their profit.
“Hence, this will further erode whatever is left of their remaining capital, after the impact of the naira devaluation high inflation rate,” he said.
Obi said that policies such as this, would not only impoverish the citizens but make the country’s economic environment less competitive.
He stressed that at a time like this, government should be reducing taxes to curb inflation, and economic challenges.
“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 center?
“And why should that purely national security office receive returns on a specific tax as stated in the new cybersecurity law?” Obi Said.
