By Onwubuke Melvin – The National Economic Summit Group criticized the timing of a cybersecurity charge, which was issued by the Central Bank of Nigeria and stressed that it should have been directed to the rich rather than the vulnerable.
This was disclosed in a statement by NESG on Thursday.
NESG noted that the 0.5 percent levy would pose a burden on the poor who are already suffering under a cost of living crisis.
The Economic Group pointed out those households whose disposable income has been strained by continuous inflation pressures would be negatively affected by this policy.
NESG said, “Amidst the cost of living crisis exacerbated by rising inflation, the cybersecurity levy is mistimed.
“The NESG posits that the levy should be targeted at high-net-worth individuals and a specific amount transferred electronically to allay the fears of the populace.”
The cybersecurity levy is introduced at a time when the nation is grappling with the aftermath consequence of the fuel subsidy removal, food inflation, and foreign exchange crisis.
Meanwhile, in the same period, the federal government introduced various fiscal and monetary policies, in addition to the recent electricity subsidy removal of Band A customers.
The Economic Group noted that introducing another levy would further reduce the purchasing power and welfare of businesses and citizens.
The group emphasizes that the imposition of a 0.5 percent levy may result in Nigerians abandoning electronic transfers, which could hurt revenue.
“Nigerians will boycott electronic funds transfers, which does not even bode well for the government due to revenue loss from electronic transfer levy,” it said.
The NESG acknowledged the need to generate more revenue through taxation and said that the government needs to properly align its policies to achieve effective social outcomes.
It also recommended that the cybersecurity levy be suspended until the mandate of the Presidential Tax Reform and Fiscal Policy Committee has been fulfilled, to avoid any conflict of interest.
“To avoid conflict of interests and ensure no policy misalignment, the NESG strongly believes that the levy be deferred and proper consultation until the Fiscal Policy Committee deems it necessary,” NESG said.
CBN has warned that any financial institution that infringes any of the provisions of the guide shall be liable to pay a fine of N2 million per infringement or, as the case may be, to be determined by the apex bank.
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