Politics
THE Centre for International Advanced and Professional Studies (CIAPS) has advised the Federal Government to adopt a comprehensive and integrated approach in driving economic growth rather than relying on levies and taxation.
The advice comes in response to the Central Bank of Nigeria’s (CBN) directive to charge a 0.5 per cent cybersecurity levy on banking transactions.
Prof. Anthony Kila, Director of CIAPS, told the News Agency of Nigeria (NAN) on Tuesday, that the levy would have a negative consequences, including increased hardship, economic injury, and inflation.
According to him, the levy will discourage savings, transfer the financial burden to customers and increase the cost of goods and services.
Kila described the policy as “counterintuitive and unproductive”, particularly when the government is encouraging online transactions while discouraging cash transactions.
He emphasised that taxation and levies were not effective means of achieving economic growth and urged the government to adopt a holistic approach to economic policy-making.
“Even those who argue for policies aimed at reducing the amount of money in circulation as a means of curbing inflation will agree that with limited supply and inelastic demand, we shall get increase in price not reduction.
“One sure thing that we can expect from this levy is that businesses will transfer it to consumers, PoS operators are likely to charge more and the same usual suspects will end up paying.
“I think the government in all its shape and form needs to find a holistic view and coherent approach to its policies. Growth should be the objective.
“I also think taxation or any form of levy is not the way to growth,” Kila said.
NAN recalls that the apex bank in a circular on Monday directed commercial banks and other financial institutions to start charging 0.5 per cent cybersecurity levy on Nigerians’ banking transactions.
CBN however listed 16 categories of accounts that were exempted to prevent multiple taxation. (NAN)
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-May 07, 2024 @ 19:04 GMT|
Tags: Centre for International Advanced and Professional Studies CIAPS Prof. Anthony Kila
