FG targets N12bn from new vehicle tax

The Federal Government is set to make about N12bn a year from the N1,000 Proof of Ownership Certificate verification fee motorists are to pay.

The Permanent Secretary, Lagos Ministry of Transportation, Abdulhafiz Toriola, who disclosed this stated that the certificate would help vehicle owners and the government assure the integrity of all vehicles registered on the National Vehicle and Identification Scheme database and track car theft and recovery of stolen vehicles.

He said, “To this end, the Federal Government has introduced the issuance of annual Proof of Ownership Certificate for all registered vehicles.”

According to the National Bureau of Statistics, there were 11.76 million vehicles in Nigeria as of Q2 2018, and the vehicle per population ratio was put at 0.06 for the period. Par various reports, Nigeria imports about 400,000 vehicles annually.

A report recently stated that a total of 192,287 vehicles were imported through the Ports & Terminal Multipurpose Limited into the country in the first 10 months of 2021, while only 114,159 vehicles came through the terminal in the same period of 2022.

Toriola stated that the Proof of Ownership Certificate will serve as official documentation for a vehicle’s legal ownership.

He said, “The POC will contain vital information, including the vehicle’s registration details, such as license number plate, model, year of manufacture in addition to the owner’s name and address.

“Having critically reviewed the challenges encountered in ensuring the promotion of Safety and Security of lives and property through the issuance of POC nationally and especially in our dear State, the Joint Tax Board, in its communiqué issued at the end of the emergency meeting held on May 9, 2023, adopted, and made a resolution that proof of ownership be issued to motorists on an annual basis nationwide.”

He added that Lagos would begin collection of POC fees from the beginning of July.

Meanwhile, other states are yet to make their positions on the development known.