Taiwo Oyedele, a tax expert and Africa Tax Leader at PwC, has criticized the newly imposed Proof of Ownership Certificate (POC) fee for registered vehicles in Nigeria.
SPY Nigeria reports that Oyedele described the tax as regressive, poorly designed, and adding complications to the already burdensome tax system.
The fee requires vehicle owners to annually prove ownership, despite already having a government-issued certificate.
Oyedele expressed concerns about the tax’s impact on businesses and tax morale. The government estimates an annual revenue of around N12 billion from the tax, but Oyedele emphasized the potential costs of collection, leakages, and the burden of compliance.
He also suggested that the government should refrain from imposing new taxes, particularly on transportation, energy, and food, given the recent fuel subsidy removal.
Oyedele urged the government to reconsider the tax and warned against setting a negative precedent, questioning whether other documents like birth certificates or land ownership certificates might be subjected to yearly renewal as well.
