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4 IRLJ 134 (2022)
Road Tax: The Road Not Taken in Nigerian Tax Reform

handle is hein.journals/inlrwolw4 and id is 514 raw text is: International Review of Law and Jurisprudence (IRLJ) 4 (3) 2022 ROAD TAX: THE ROAD NOT TAKEN IN NIGERIAN TAX REFORM* Abstract The current trend in the taxation of road user's vehicle advocates for the reduction of the emission of carbon dioxide. It contemplates the implementation of element of Carbon dioxide emission into the tax base of annual road tax. The paper however concentrates more on the importance of road user's taxation for proper and adequate road maintenance and not the current trend of road tax that has imposed and enforced taxation base on Carbon dioxide emission. Road tax in Nigerian tax regime is ambiguous and unclear compare to what is obtainable across the globe. The crux of this paper is to spike a police guide for the reformation of road tax in Nigeria and ensuring its conformity with the global trend. Keywords: Road Tax, Vehicles, User, Tax Reform, Nigeria 1. Introduction The countries of the world across the globe have long harnessed the huge advantage of road user's taxation in road maintenance and development. Fiscal function is the oldest and the most important function of taxes.1 It is essential that any tax must meet the fiscal function. But sometimes, it is appropriate to impose specific tax for the purpose of financing specific items other than financing public amenities generally. Road tax is imposed most specifically for road development and maintenance.2 The place of road tax in Nigeria jurisdiction is not clear. There is no actual data with regards to number of road tax collected and how it is ploughed back to the specific need of road maintenance as Nigerian roads remains bad. Most tax reforms have not considered the importance of road. There is lack of clear legislation on road tax administration and collection. The only legislation that provides for road tax is Taxies and Levies (Approved List for Collection) Act.3 The Act provides that road tax shall be collectible by the State Government.4 There is no further provision as to what road tax is and how it shall be collected. A lot of taxes are collectible in the form of road tax. There is excise duty, registration of vehicle, parking fees, different categories of motor stickers etc. Another similar legislation which did not mention road tax is Federal Highway Act. The Act provides for the power of the minister to collect or designate the collection of toll fees.5 While tolls are important instrument for charging road users in developed countries, they are not yet of widespread relevance for Sub-Saharan Africa.6 It is important to develop are clear legislative map for collection and administration of road user's taxation. This paper seeks to provide the basis for the legislative and police guide. Where it is properly collected and accounted for, there will be increase in revenue for road maintenance. The work conceptualizes the theories of road tax and examines the challenges and problems of road tax administration. It will provide insight for efficient road tax reform in Nigeria. 2. The Concept of Road tax Road user tax is referred to the main taxes which road users are required to pay in order to use the road network.' It is better described as road user taxation. These are payments which vary with road use, such as the tax on the petrol and diesel, Scandinavian kilometer tax, as well as payments which are fixed regardless of road use such as the annual vehicle tax. a The road tax purpose can be defined as taxation of road network usage by road vehicles. The legislation tried to solve the urgent problem of how to raise the financial funds for maintenance and development of road infrastructure. Road users should be required to cover their 'costs' and that road user taxes should be determined on the basis of this objective. However, the definition of road use *By M. N. UMENWEKE, PhD, FICMC, ACTI, BL, Professor of Law and Formerly Dean, Faculty of Law, Nnamdi Azikiwe University, Awka, Anambra State. Email: mn.umenweke@unizik.edu.ng and *N. B. AMADI, LLB, LLM, BL, AICMC, ACTI, PhD Candidate, Faculty of Law, Nnamdi Azikiwe University, Awka; Lecturer, Faculty of Law, Godfrey Okoye University, Thinker's Corner, Enugu. Email: namadi@gouni.edu.ng 1 D Peter, 'Principle of Taxation of Road Motor Vehicles and their possibilities of application' Acta Univ. agric. Et silvic Mendel. Brun., 2012, LX, No.2 pp. 483-492 available at <https://www.researchgate.net/publication/270702798> accessed 20 May,2021. 2 Ibid pg 2. 3 Cap T2 Laws of Federation of Nigeria (LFN) 2004. 4 This is provided for under part B of the Act. s Federal Highway Act, Cap. F13, LFN, 2004. 6 C Creightney, 'Road User Taxation in selected OECD Countries' Sub-Saharan Africa Transport Policy Program, The World Bank and Economic Commission for Africa, SSATP Working Paper No 3 available at http://documents.worldbank.org/curated/en/Road-user-taxation-in-selected-OCED-countries accessed on 20 May,2021. ' C Creightney, 'Road user taxation in selected OECD Countries' Sub-Saharan Africa Transport Policy Program, The World Bank and Economic Commission for Africa, SSATP Working Paper No 3 available at <http://documents.worldbank.org/curated/en/Road-user-taxation-in-selected-OCED-countries. accessed 20 May,2021. 8 Ibid. 134

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