Raising concerns about the newly enforced cyber security levy, Peter Obi, the Labour Party’s presidential candidate for 2023, expressed his disapproval, citing its potential negative impact on the economy.
In a statement released by Yunusa Tanko, his spokesperson in Awka on Wednesday, Obi emphasized the need to focus on nurturing and revitalizing the economy, as he believes that introducing additional taxes amidst the prevailing challenges in the country will further destabilize the economy.
Observing that the cyber levy targets the trading capital of businesses rather than their profits, Obi argued that this would deplete the capital base of organizations. This, he pointed out, leads to a scenario of multiple taxation on banking transactions, which are already subjected to various other taxes like stamp duties.
Highlighting his stance, Obi remarked, “This move not only contradicts the commitment to consolidating and simplifying the tax regime but also adds to the financial burdens faced by businesses, especially following the adverse effects of currency devaluation and high inflation rates.”
The former governor of Anambra State expressed concerns that such policies could escalate poverty among citizens and reduce the competitiveness of the country’s economic landscape.
He emphasized that, especially in the current circumstances, the government should be considering reducing taxes to counter inflation and alleviate economic hardships.
“The role of the National Security Adviser should not extend to functioning as a mere revenue collection entity for the country,” noted Obi, underlining the need for more strategic economic policies.