Cyber Security Levy: Another taxation burden on a failing economy, says Peter Obi

Mr. Peter Obi

Labour Party presidential candidate in the 2023 general elections, Mr. Peter Obi, has criticized the newly introduced cyber security levy by the Federal Government, calling it another example of excessive taxation that will further strain the already struggling economy. 

In a press statement signed by Dr Yunusa Tanko, Obi expressed his concerns that the government's multiple taxation policies are more focused on adding to the economic burden on the people rather than promoting recovery and growth.

On his social media handle on Wednesday, May 8, 2024, Obi emphasized that the introduction of the cybersecurity levy on Nigerians already facing severe economic hardship is a clear indication that the government is more interested in exploiting a failing economy rather than working towards its recovery and growth.

Obi said that "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.

Obi said further: "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.

"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?"
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