Nigerian Bar Association Section on Public Interest and Development Law, NBA-SPIDEL, has dragged the Federal and Lagos State governments before a Federal High Court in Lagos over the imposition of a Proof of Ownership levy on all vehicle owners.
The NBA-SPIDEL is, among other demands, asking the court to declare the new yearly vehicle documentation, which came with a N1,000 price tag, as multiple taxation and unlawful.
The plaintiffs in the suit, which is yet to be assigned to a judge, are NBA-SPIDEL; the Chairman of the section, John Akpokpo-Martins; the Secretary, Funmi Adeogun, and a member of the Governing Council of NBA-SPIDEL, Francis Ogunbowale.
The defendants in the case are the Federal Government, the Joint Tax Board, and the Governor of Lagos State.
The plaintiffs are asking the court for a declaration that “by Section 86 (1) of the Personal Income Tax Act 2004 that sets up the Joint Tax Board (JTB), the power it purportedly exercised to impose yearly fees for annual renewal of Proof of Ownership (POC) Certificates on vehicle owners, is ultra vires, unlawful and unconstitutional.”
They are also urging the court for a declaration that the imposition of annual renewal of Proof of Ownership certificates on vehicle owners amounts to multiple taxation and, therefore, illegal because tax agencies and other agencies of Governments usually issue certificates of proof of ownership to vehicle owners at the point of registration of vehicles.
The plaintiffs are further seeking “an order striking down the provisions of sections 73(1), (2) & (3) of the National Road Traffic Regulation No. 101, Vol. 99 of 25th of December 2012, on the grounds of being in violent breach of Item 63 of Part I of the 2nd Schedule to the 1999 Constitution and section 1(1) of the 1999 Constitution, as amended, and therefore unconstitutional.”
