Lawmakers Disagree Over Cybercrimes Tax

Adedayo Akinwale in Abuja

Members of the House of Representatives were sharply divided yesterday, over the implementation of the suspended cybercrimes tax.

While some lawmakers believed that the executive arm should go ahead with the implementation of the controversial tax policy, others believed that the introduction of the tax would be indirectly passed on to Nigerians who are currently groaning over the removal of fuel subsidy.

The Minority leader, Hon. Kingsely Chinda, laid the ground for the debate while moving a motion on matter of urgent national importance on the urgent need to correct the wrong perception of the House on implementation of the Cybercrimes Act spored by him and seven others.

Presenting the motion, Chinda recalled that on 9th May,  2024, the House considered a joint motion on the implementation of the Cybercrimes (Prohibition and Prevention) Act, 2015  as amended in 2024 and resolved to direct the Central Bank of Nigeria (CBN) to withdraw the ambiguous circular of 6th May, 2024 and in its place issue an unambiguous and unequivocal circular in line with the letters and spirit of the law.

He decried that the media space was awash with the wrong impression that the House was against a law passed by her, which he said painted the House in bad light.

Chinda noted that cybercrime was more devastating and could cripple a nation easier than conventional crime in the physical space.

He said humongous costs expended on security and the very likely limitations of funding cyber space security by the government.

The lawmaker stressed that the Cybercrimes Act imposes a levy of 0.05 per cent on some establishments enumerated in the second schedule to the Act, that occupy the cyberspace; do business therein and make profit therefrom.

He said the levy does not apply to ordinary Nigerians but only to the establishments listed in the second schedule to the Act, viz: GSM Service providers and all telecommunication companies; internet service providers; banks and other financial institutions; insurance companies and Nigerian Exchange Group.

The House urged, “The CBN and Office of National Security Adviser to cause further enlightenment on the Cyber Crimes Act and implementation of the 0.5% (0.005) levy.

“In line with Order 20 Rule 93 (2) (b), mandate the House Committee on National Security and Intelligence and Digital and Information Technology to be part of the Committees to superintend over the implementation of the House resolution of 9th May 2024 on the Cybersecurity Levy, with the committee on National Security and Intelligence as the lead the committee.”

However, in his submission, Hon. Sada Soli, said the confusion started from the office of the Attorney General of the Federation (AGF), adding that the law reform commission should sign up and do their job.

On his part, Hon. Ali Jesse, while acknowledging Section 44 of the Cybersecurity Act, said in most cases, when government introduces tax to banks and other organisations, they simply transferred the burden to Nigerians.

He urged the committee while carrying out the investigation to do it with a human face, saying they should ensure that if at all government will go ahead with the tax on Cybersecurity, Nigerians should not be overburdened

In his intervention, the Deputy Speaker, Hon. Ben Kalu, said while laws were made by the legislative arm, the implementation falls under the executive arm.

He said as legislators, they cannot be probating and reprobating at the same time, adding that they cannot make law and still come by way of motion to stop the implementation of the law.

His words: “All we are saying is for the executive not to tax Nigerians directly or indirectly. All we are doing today is to enlighten Nigerians that this law does not affect Nigerians that only companies making money from cyberspace are to pay the tax.

“In the course of implementation, we find out that implementers, that is the executive power is abusing it, we will come back to amend it. But we cannot at this stage amend by way of motion.

“All we are saying is to caution the executive arm. This is the content of the law we made, in the process of implementation, do not tax Nigerians directly or indirectly,” he added.

In his contribution, Hon. Ademorin Kuye was of the opinion that the whole confusion came from the office of the governor of CBN through its directives to the banks.