KPMG Slams Cybersecurity Levy: Unjustifiable, Ill-timed
In a recent critique, global audit and tax firm KPMG has vehemently opposed the federal government’s decision to impose a 0.5 percent cybersecurity levy, labeling it both unjustifiable and ill-timed, particularly in light of prevailing economic challenges. The commentary, authored by Olugbenga Ige, underscores KPMG’s stance that such levies do not pave the way for sustainable economic growth, echoing sentiments against excessive taxation.....KINDLY READ THE FULL STORY HERE▶

The levy, which extends beyond financial institutions to encompass GSM service providers, telecommunication companies, internet service providers, insurance firms, and the Nigerian Stock Exchange, has stirred widespread apprehension regarding its potential repercussions. KPMG cautions against the unintended consequences of this policy shift and urges regulators to carefully consider the ramifications before proceeding with implementation.

Highlighting Nigeria’s formidable revenue constraints, KPMG acknowledges the government’s imperative to mobilize funds. However, it emphasizes the inefficacy of higher taxes as a panacea for economic woes, stressing that no nation can “tax itself to prosperity.” The firm questions the rationale behind enforcing the levy now, given the country’s economic fragility, further emphasizing the critical role of timing in policy efficacy.

While the cybersecurity levy ostensibly aims to bolster defenses against escalating cyber threats, KPMG challenges the lack of transparency surrounding its cost-benefit analysis. Despite projections suggesting an annual revenue influx of approximately N3 trillion, KPMG contends that the absence of a formal presentation to the public undermines informed decision-making.

In response to mounting public outcry and amidst harsh economic realities, President Bola Tinubu has ordered the suspension of the contentious levy. This move reflects widespread discontent and underscores the imperative for policymakers to heed public sentiment in shaping fiscal policies.

KPMG’s critique serves as a poignant reminder of the delicate balance between revenue generation and socio-economic well-being, urging policymakers to prioritize judicious fiscal measures aligned with broader national interests.