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Lagosians to pay more for Uber, Bolts as Lagos State increases tax on e-hailing operators
By Adekunle Badmus
Lagos State Government is set to tax ride hailing businesses like Uber and Bolt some more in a move that will likely lead to a hike in fares for the end users.
The new regulation for ride hailing services will take effect from August 20, 2020.
In a document titled, ‘Guidelines for Online Hailing Business Operation of Taxi in Lagos State 2020’ issued by the Lagos State Ministry of Transportation.
“e-hailing Taxi Operation’, all drivers must pay 10 per cent generated on every trip to the Lagos State Government.”
This is contained in Part 4.1, Subsection 5 of the document.
“All operators of e-hailing taxi service must pay the state government 10 percent service tax on each transaction paid by passengers to the operators,” the document partly reads.
Lagos is Nigeria’s commercial capital and most populous city.
The policy also mandates all e-hailing taxi firms to pay N25 million annually to the state government per 1,001 vehicles for an operational licence.
They are also expected to pay N10 million annually for renewal on every 1, 001 cars in their pool.
New firms will also pay a N10 million provisional fee to the state government before the commencement of operations.
