NESG cautions CBN on Cyber security implementation
By Patience Ikpeme
The Nigeria Economic Summit Group (NESG) has cautioned the Central Bank of Nigeria on the implications of going through with the 0.5% cyber security levy describing it as ‘mistimed’.
NESG stated that the new Levis can impact household welfare and business efficiency, potentially leading to a decreased GDP and cause more inflationary pressure on the economy.
NESG holds the stance that the timing of the cyber security levy is not ideal, given the current economic challenges facing the country .
They suggest targeting high-net-worth individuals and delaying implementation until further consultation is conducted.
As Nigeria considers tax reforms and streamlining its tax system, the NESG urges caution in implementing new levies that could strain businesses and individuals stating that Proper sequencing of reforms is essential for positive socioeconomic outcomes.
The NESG emphasizes the need for thorough consultation and alignment with overall fiscal policy goals before imposing new taxes or levies.
In addition to the cybersecurity levy, businesses in Nigeria are subject to corporate income tax, with rates varying based on company size. Small businesses with a turnover below NGN25 million are exempt, while medium and large companies face rates of 20 percent and 30 percent, respectively.
Taxes and levies, such as the Tertiary Education Tax and the National Agency for Science and Engineering Infrastructure Levy, contribute to the overall tax burden on businesses.
