By TINA TIMOTHY

The Labour Party (LP) Presidential Candidate in the 2023 general elections, Peter Obi, has decried the recent cyber security tax by the National Security Adviser (NSA)

While expressing worry that the office of the NSA has become a revenue collecting centre, Obi, on his verified X handle @PeterObi, on Wednesday, May 8, 2024, lamented that Nigerians are already suffering severe economic hardships hence should be nurtured by reducing their taxes rather than milked via multiple taxation.

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 Governments 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 countrys 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? Obi asked.