Oyedele has expressed his dissatisfaction with the tax, stating that it is regressive and poorly designed, which only adds more complexity to an already burdensome tax system in the country.
Under this fee, vehicle owners are required to provide proof of ownership on an annual basis, even though they already possess a certificate issued by the government.
Oyedele has raised concerns about the impact of this tax on businesses and tax morale. While the government expects to generate around N12 billion in annual revenue from this tax, Oyedele has highlighted the potential challenges such as the costs involved in collecting the tax, possible leakages, and the increased compliance burden it places on vehicle owners.
According to the online newspaper , Taiwo Oyedele, the Africa Tax Leader at PwC and a tax expert, has put forward a suggestion that the government should avoid implementing additional taxes, especially concerning transportation, energy, and food, considering the recent removal of fuel subsidies.
Oyedele has appealed to the government to reconsider the introduced tax and has cautioned against establishing an unfavorable precedent. He has raised questions about the possibility of other documents, such as birth certificates or land ownership certificates, also being subjected to yearly renewals, if this tax is allowed to stand.
Source: Emmynet24
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