*Slams FG, Lagos for Imposing ‘Unlawful’ Car Ownership Levy
The Nigerian Bar Association Section on Public Interest and Development Law (NBA-SPIDEL) has filed a lawsuit against the Federal Government and Lagos State Government over the recently introduced N1,000 yearly vehicle ownership renewal fee.
In the suit before a Federal High Court in Lagos, NBA-SPIDEL is seeking the court to declare the new levy as unlawful multiple taxation.
The plaintiffs – NBA-SPIDEL, its Chairman John Akpokpo-Martins, Secretary Funmi Adeogun and governing council member Francis Ogunbowale – listed the Federal Government, Joint Tax Board and Lagos State Governor as defendants.
They argue that the N1,000 fee for annual renewal of Proof of Ownership certificates imposed on vehicle owners is unconstitutional.
The lawyers contend that the power exercised by the Joint Tax Board to introduce the yearly tax is ultra vires, given that various agencies already issue ownership certificates during initial vehicle registration.
NBA-SPIDEL seeks the court to nullify provisions of the law mandating the new levy, saying it violates constitutional provisions on taxation powers.
The suit comes shortly after the September 1 deadline for vehicle owners in Lagos to pay the controversial tax or risk sanctions.
The NBA section says the new vehicle ownership renewal fee amounts to multiple taxation imposed without requisite legal backing.
The outcome of the suit will determine the legality of the controversial levy at a time of public outcry against escalating tax burdens.
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