The plan by the new administration to compel owners of all registered private and commercial vehicles throughout the country to pay N1,000 proof of ownership tax has been opposed by the majority of Nigerians. According to the Permanent Secretary, Lagos State Ministry of Transportation, Abdul Hafiz Toriola, the initiative aims to streamline and enhance the process of vehicle ownership verification of the yearly proof of ownership certificate.
The new policy, Toriola says, will also ensure transparency,
security and accountability within the transportation network. Hitherto, the
proof of ownership certificate was issued for free to buyers of new vehicles by
the Federal Road Safety Corps (FRSC).
The initiative is in accordance with the National Road
Traffic Regulation 2012 as amended, No. 101,Vol 99; Section 73- (1), which
states that ‘there shall be proof of
ownership certificate for all registered vehicles.’ Under Section 73
(1-6) ‘the commission shall establish and maintain a central data base for
vehicles and drivers for the federation.’
On its face value, the policy looks good and functionally
designed to enhance effective security administration. As generously espoused
by the government, it is in tandem with global best practices since it was
specially printed and connected with other vehicle documents. It will also help
to authenticate and track the real-time status and guarantee the integrity of
all vehicles registered on the National Vehicle and Identification Scheme
(NVIS) database.
It will minimise car theft and enhance the recovery of
stolen vehicles and ensure that motor vehicle documents can easily be verified
regardless of the issuing state. If it is fully enforced nationwide, the scheme
is expected to generate about N12 billion annually.
Despite its perceived benefits, most Nigerians are
vehemently opposed to it. There is little or no difference between registration
of vehicles and the new proof of ownership certificate. The details are
invariably the same. Besides, it amounts to double taxation. Above all, the
policy is being introduced at a time Nigerians are suffering from the effects
of the removal of petrol subsidy.
It is also coming at a period owners of businesses are
calling for an end to multiple taxation. Even some operators in the private
sector are calling for more tax waivers from the Tinubu administration. The
inflation rate has been on a steady rise due to the removal of fuel subsidy and
the unification of the multiple exchange rates. The hike in tuition fees in the
universities and unity schools will further impoverish many Nigerians.
More Nigerians are likely to be thrown into the poverty net
on account of government’s harsh economic policies. Government must not continue
to overburden the citizens with more taxes. Let the government leverage on
agriculture and solid mineral sectors to increase its revenues. Apart from
creating wealth, these sectors can generate more jobs. Instead of raising the
nation’s revenue through taxes, let the corruption in government’s Ministries,
Departments and Agencies (MDAs) be curbed.
In addition, the cost of governance at federal and
sub-national levels must be drastically reduced. If the aim of the introduction
of the new policy on proof of ownership certificate for all private and
commercial vehicles registered in Nigeria is to generate revenue, which many
believe it is, the government should shelve its implementation forthwith.
Apart from being a duplication of vehicle registration and
double taxation, it is insensitive, exploitative and punitive. It is another
avenue to enrich the collectors of the N1,000 fee, the personnel of FRSC and
the tax consultants. The broadening of the revenue base of government does not
necessarily entail the unbridled imposition of taxes and levies.
Let the government exploit the abundant untapped mineral
resources across the country, where illegal miners are operating unhindered.
The FRSC should stop seeing itself solely as a revenue generation agency. Its
core mandate is to ensure safety on our roads. The personnel of the agency
should not abdicate this onerous duty in pursuit of revenue.
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