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FG begins vehicle tax collection to promote environment sustainability

The Federal Government has begun the nationwide implementation of the Green Tax on vehicles, aimed at fostering environmental sustainability and decreasing carbon emissions.

This annual environmental fee, established under the National Green Tax Policy, must be paid by owners of petrol, diesel, and other internal combustion engine vehicles during the vehicle registration and renewal process.

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The tax will be collected by the Nigeria Customs Service and the respective State Boards of Internal Revenue and vehicle licensing authorities, in coordination with the Federal Government, according to the vehicle’s state of registration.

Electric vehicles are generally exempt from this tax, while the fee varies based on the vehicle’s type and category.

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The government has stated that the revenue generated from the Green Tax will be utilized to fund environmental protection initiatives, promote cleaner transportation policies, and support other climate-related programs nationwide.

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