Juliet Jacob Ochenje
A suit challenging the imposition of an annual levy for a certificate of proof of vehicle ownership in Nigeria has been adjourned until March 4, 2024.
The Federal Government introduced the fee of N1,000 in June 2023, requiring all motorists to pay annually for Proof of Ownership certificate verification.
The Lagos State Government began collecting the fee in July 2023.
The Nigerian Bar Association Section on Public Interest and Development Law brought the case against the Federal Government, the Lagos State Government, and the Joint Tax Board, arguing that the defendants implemented the policy without statutory support.
The plaintiffs seek a court order to prevent the defendants from interfering with the freedom of movement of vehicle owners for non-payment or renewal of their proof of ownership certificates.
The plaintiffs also question whether the annual renewal of the certificates constitutes illegal multiple taxation, as the defendants and various state governments have already issued certificates or proof of ownership at the time of registration.
The case began on Monday in the Federal High Court in Abuja before Justice Inyang Ekwo. The court confirmed that all defendants were served the originating processes and proof of services filed.
During the preliminary hearing, the plaintiffs’ representatives appeared, but the first and second defendants were not represented in court.
The adjournment allows for more time to review the arguments and gather evidence. The outcome of the case will have significant implications for motorists and governments throughout the country.
