In an effort to lessen the burden on the private sector, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has requested that the Federal Government and the Central Bank of Nigeria (CBN) set a ceiling of N500 on the highest amount of the recently implemented cybersecurity tax.
In a statement obtained by Nairametrics, the organization made this recommendation and expressed worries about how the new tax will affect many facets of the economy.
The group claims that since there were over N600 trillion in electronic payments made last year, 0.5% of that amount annually is noteworthy. Additionally, since the incidence rate is substantially lower than the tax rate, the suggested charge should be lowered to N500.
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The group also called for clear performance metrics to justify the introduction of the additional tax on members of the private sector The statement read,
“With over 600 trillion naira (NIBSS 2023) in transactions annually, the projected revenue from this levy is considerable. For this reason, we must ask: what is the proportion of ALL online transactions are fraudulent transactions? In what way will this levy counteract such transactions? With incidence rates significantly lower than the levy rate, there is a mismatch that needs to be addressed. “We will therefore advise a maximum levy cap of Five Hundred (500) naira. It is also a fact that other methods exist to reduce local online cybersecurity risks through professional private sector experts.”
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NACCIMA asked the Federal Government to involve the private sector in the management of the fund for transparency’s sake and stated that the new levy contravenes the provisions of the constitution on the federation’s revenue.
Commenting on the effects of the levy on the private sector, the group said it conflicts with assurances of the Federal Government through the Presidential Committee on Fiscal Policy and Tax Reforms, which is on the verge of producing its final report that hopes to streamline the multiple taxes being borne by the private sector.
The statement also noted that the levy is inimical to Nigeria’s competitiveness in terms of ease of doing business and could catalyse capital flight and brain drain in the tech sector.
