The Kaduna State Internal Revenue Service (KADIRS) has removed third party insurance in the registration and renewal of commercial vehicles’ documents from its coverage.
Dr Zaid Abubakar, Executive Chairman, KADIRS made the announcement in Kaduna at a sensitisation of taxpayers in Kaduna Central Senatorial zone.
Abubakar explained that the compulsory third party insurance was paid at the same time as motor vehicle registration, adding however, that mainly private vehicle owners renew their vehicle documents in the state.
He said that commercial vehicle owners preferred to register and renew their vehicle documents in neighbouring states where the cost for third party insurance is lower than what obtains in the state.
“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 conduct their business in Kaduna State but would 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 their vehicle papers in Kaduna State.
“This will enable the state to optimise revenue generation from motor vehicle registration due to the state,’’ Abubakar said.
Reacting to the removal, 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 travelled to 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 preferred to go to other states argued that the N5,000 charged in Kaduna State was too expensive compared to the N1,500 or N2,000 for the same insurance in Jigawa.
“Now that insurance has been taken off, we will encourage our members to renew their vehicle papers in Kaduna state,” he promised.
The sensitisation has “Digitisation of tax administration, taxpayer education and voluntary compliance: Panacea for fiscal resilience towards building a modern society’’ as its theme.
It is supported by Christian Aid, the Partnership to Engage, Reform and Learn, and UK’s Foreign, Commonwealth and Development Office governance programme.
The engagement, to be extended to the two other senatorial districts in the state, is for KADIRS to interact and to document challenges taxpayers want to be addressed, especially issues of remittance of tax returns and payment.