The Federal Government has commenced the nationwide collection of the Green Tax on vehicles as part of efforts to promote environmental sustainability and reduce carbon emissions.
According to reports by Tax Advocate, the Green Tax is an annual environmental levy introduced under the National Green Tax Policy and is payable by owners of petrol, diesel and other internal combustion engine vehicles during vehicle registration and renewal processes.
Collection of the tax will be carried out by the Nigeria Customs and relevant State Boards of Internal Revenue and vehicle licensing authorities in collaboration with the Federal Government, depending on the state of registration.
Electric vehicles are generally exempt from the levy, while the amount payable varies according to the type and category of the vehicle.
The government said proceeds from the Green Tax will support environmental protection initiatives, cleaner transportation policies and other climate-related programmes across the country.