FG shuns financial inclusion, imposes more taxes on citizens, depositors

of more taxes on electronic payments on which the ambitious goals rest their wings.• Mixed reactions trail levy, 16 transactions get exemption• Economists insist cybersecurity levy is insensitive• You can’t tax your way out of economic challenges, economists warn Tinubu

Indeed, there are exemptions to the cybersecurity levy such as loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, intra-bank transfers between customers of the same bank, inter-branch transfers within a bank, letters of credits , savings and deposits including transactions involving long-term investments such government debt instruments and government social welfare programmes transactions.

Economists said it would force people to resolve cash transactions, a possibility that would increase the volume of cash outside the banking system, which has exceeded 90 per cent. Consequently, with more cash transactions, banks will suffer, and individuals will be at higher risk of robbery and attacks from thieves.

“This additional strain on organizations and individuals could lead to further price increases for consumers. However, and at the same time, won’t this continuous stream of electronic banking and financial charges slow the growth of cashless? The intention of the levy appears to be to provide funding for cybersecurity.

“Legal backing is essential but isn’t the only requirement for successful implementation of measures of this nature. The process and implementation must be properly managed to ensure it does not discourage cashless transactions and hinder technological development,” he stated. Economists, cybersecurity and technology experts have come hard on the FG for introducing the 0.5 per cent cybersecurity levy, maintaining that the levy is adding more burdens to Nigerians who are struggling to survive due to increasing economic pressures.

Also commenting, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise , Dr Muda Yusuf, described the levy as a major concern to economic agents. He said the cybercrime levy is even more troubling “because it is a tax on electronic transactions, not on profit” which has no regard to the health status of the businesses.

Bola Tinubu Cybercrime Jide Awe

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