By Philip Yatai
The Kaduna State Internal Revenue Service (KADIRS) on Wednesday announced the removal of insurance in the registration and renewal of commercial vehicles’ documents in the state.
Dr Zaid Abubakar, Executive Chairman, KADIRS made the announcement in Kaduna at the one-day sensitisation of taxpayers in Kaduna Central Senatorial Zone.
The sensitisation has as its theme, “Digitization of Tax Administration, Taxpayer Education and Voluntary Compliance: Panacea for Fiscal Resilience Towards Building a Modern Society”.
It is supported by Christian Aid and Partnership to Engage, Reform and Learn was supported by Christian Aid and Partnership to Engage, Reform and Learn (PERL), a UK Foreign, Commonwealth and Development Office (FCDO) governance programme.
Abubakar explained that the compulsory third party insurance was paid to insurance companies at the same time as motor vehicle registration, adding however that mainly private owners renew their vehicle documents in the state.
He disclosed that commercial vehicle owners prefer to register and renew their vehicle documents in neighbouring states where the cost for the third-party insurance was less.
He said: “If the compulsory third-party insurance will be a hindrance to tax collection and revenue generation in any way, we can do without it.
“This is very disturbing because these commercial vehicle owners do business in Kaduna state but will rather renew their vehicle documents in other states.
“Therefore, we are taking off the third-party insurance in the registration and renewal of vehicle documents for commercial vehicles.
“Following the removal of insurance in vehicle papers renewal, I am urging all commercial vehicle owners to renew the vehicle papers in Kaduna State.
“This will enable the state optimise revenue generation from motor vehicle registration due to the state.”
Reacting to the development, Mr Suleman Shaba, Secretary, Road Transport Employers Association of Nigeria (RTEAN), Kaduna State, lauded the gesture saying the step would encourage renewal of vehicle papers in the state.
Shaba acknowledged that most of the members travel as far as Jigawa, Kano and other neighbouring states to either register new vehicles or renew expired papers.
He said that some of the members who prefer to go to other states argued that N5,000 being charged in Kaduna state was too expensive compared to the N1,500 or N2,000 for the same insurance in Jigawa state.
“But now that insurance has been taken off, we will encourage our members to renew their vehicle papers in Kaduna state,” he promised.