The Lagos’ 10% Service Tax on Uber, Bolt, etc with up to N25 Million License Fee

The Lagos’ 10% Service Tax on Uber, Bolt, etc with up to N25 Million License Fee

Nigeria continues to innovate on revenue collection. From federal to state governments, if we have put the energies we have exerted on how to collect taxes and fees from citizens and companies, we would have advanced. The latest one is coming from the center of excellence, though nothing excellent on this playbook. Yes, Lagos will now collect 10% service tax on Uber, Bolt and all e-taxis. That is for Lagos. This new 10% does not substitute current fees and taxes!

More so, “the law now mandates operators to acquire a provisional license at N10 million (about US$26,000) per 1,000 vehicles or less; N25 million (US$65,000) for a fleet above 1,000 and renew annually at N5 million and N10 million respectively“, TC Daily summarizes.

Come August 20, Guideline for On-Line Hailing Business Operation of Taxi in Lagos will come into effect. It is the Lagos State government’s approach towards regulating the ride-hailing sector in the commercial city and has been the cause of concern since last year when its existence was first hinted at. Both motorcycle and taxi operators have been at regulatory loggerheads with the state government since 2018. In January, the state government announced the ban of motorcycles, including the tech-enabled operators, from major areas in the state to the outrage of users and the operators. There was a peaceful march afterwards to protest the ruling. As was speculated then, the law now mandates operators to acquire a provisional license at N10 million (about US$26,000) per 1,000 vehicles or less; N25 million (US$65,000) for a fleet above 1,000 and renew annually at N5 million and N10 million respectively. The state government is also asking for a 10% service tax on every ride the operators complete.

Sing Ease of Doing Business improving…hahaha. Except foreign companies, which Nigerian entrepreneurs can raise N25 million just to get a piece of paper? It may not be really bad for Uber and Bolt. At least, the government has killed any local challenger for good.

Technext presents the evidence.

Poor ride-hailing sector players. California is already hitting them hard; it seems there is no escape velocity for these human aggregators.

A California judge has ordered Uber and Lyft to stop classifying its drivers as independent contractors, handing the state a signal victory in a battle over the gig economy Monday.

After the state passed a law broadly requiring more workers to be treated as employees, California Attorney General Xavier Becerra and city attorneys sued the ride-hailing firms this year, arguing they were violating the law by deeming their drivers to be independent contractors. Becerra went to court for an injunction immediately compelling the companies to treat their drivers differently.

Share this post

14 thoughts on “The Lagos’ 10% Service Tax on Uber, Bolt, etc with up to N25 Million License Fee

  1. The mindset is such that those in government see any entity trying to grow and create jobs as something to be devoured or milked, so to them, it’s always attractive to demand more from these businesses; and if the latter can’t pay, they should disappear! Perhaps the government has taken it upon itself to create jobs for its citizens, and therefore doesn’t need a partner on what it can achieve effortlessly…

    How does hounding new businesses make the economy grow or improve the living standard of the citizenry? Could governments handing out palliative or creating adhoc meagre jobs from time to time create wealth and improve productivity for the populace? Those who say they are for the people are the ones killing the people, it’s vile and ignoble.

    Updated—

    Electing people who built their career in politics or civil service may end up hurting all of us in this contemporary knowledge economy. You need entrepreneurs who have successfully built organisations to lead in the political space.

    Anyone who sees taking more money from start-ups and established businesses as a form of good governance, obviously has nothing to offer in political leadership.

    You cannot claim to care about your compatriots, without working hard to ensure that whatever ventures they create are never stifled or suffocated. Too many dumb people with toga of ‘his excellency’, ‘honourable’, ‘distinguished’, and all the nomenclatures they obviously know nothing about.

    The most effective work any responsible government can do is to guarantee economic wellbeing of its citizens, and with this singular achievement, the government spends less on education, health, security, etc. Because when people are productive and can live comfortably well, good things happen. This misguided notion that government needs more money to carry out its responsibility remains fraudulent, just create opportunities for people to fend for themselves, then watch them blossom.

    Reply
  2. Lagos state Government is dumb for this step on drivers on the so called apps i don’t fucking give a dam about there actions on the shenanigans, sanwo olu should think well before directing his so called law enforcement team to carry out this shameful act on its citizens, face the apps and not the drivers struggling so hard to make ends meet, work u didn’t create, it’s extortion you want to introduce on your people struggling out here on the streets of Lagos, face the slave masters……. They are the problem here, ripping us, car they didn’t buy, fuel they don’t provide, maintenance they don’t carry out, cards they don’t provide for the drivers yet they fucking take 25% and 20% commission respectively from every trip on there stupid apps. They have offices located here in Lagos, face them and not your people struggling…… Be wise Mr governor. Tah!

    Reply
  3. Yes good talk. Immideatly sanwo olu took over, he imposed laws on poor people now he focused on those that they are struggling to survive on transportation Uber and bolt. No mind him he want to have his own E heling app so that if he leave office. Na only 4yeas in office make he do his own.

    Reply
  4. Good morning,
    We are aware of the latest developments but the government should understand crime rate is reducing because citizens have something to work with since the government cannot provide job for citizen of this country, the question should directed to the company involved not citizen because it will not be easy ,it lead to crisis in the state, government should think very welll, the country is the bad state already. Way further is the best. And how to help the citizen not just government.

    Reply
  5. Gud afternoon Lagos I’m an e hailing driver I beg Lagos State govt to consider us on this issue ,70% of us doing this job is bcos no other option ,so we chose to do it rather than constitute nuisance I’m the society,the pathetic part of it is that this cars are not for most of us we drive it on hp or rental and we at through our anus many sleep out risk their lives just to meet up with weekly payments to avoid the car being withdraw from them ,so the government should be diplomatic and consider the people they govern on,

    Reply
    1. To me, Whatever the Government is doing now is already late, these e-cabs has made so much from us. So if they(Govt) ask them to leave, they dont have anything to loose.

      Reply
      1. But the poor unemployed graduates and other jobless Nigerians trying to make living will suffer more, Lagos State is not losing as such.

        Reply
  6. What if the company can’t meet up with your requirements? What will be the fate of those drivers that use it as source of livelihood, so Mr governor knows what he wants to do before he was asking lagosians to come down. God can never shame us.

    Reply
  7. Any attempt to frustrate me as a uber driver wont be easy on the people of Lagos. Innocent people will pay for it because I have family to take care of. No issue all I have to do to survive will be diverted to. Hushpuppy will be like a small boy play when I start my own. I would scam everybody scramble. Sanwo olu himself will pay.

    Reply
  8. Sanwo olu and his govt are just capitalists and it’s very VERY bad. Guys are struggling to survive in lagos, taxify drivers brave the insults from riders, damage to cars because of bad roads, rising fuel price and the risks of being outside all day in this covid era, with all this lagos state is still heaping more problems on them. I curse the day sanwo olu was elected, ambode said it oh, the man has mental issues, now it has become clear. But no matter what he does, we will survive.

    Reply
  9. Nigerian agencies continue to show an abysmal lack of understanding of the Technology space. Article 3.3.vii of the Lagos State policy gives the eHailing operators ample room to contest enforcement of licensing in court.

    Reply

Post Comment