…Extends implementation date by 7 days
…Drivers now to pay N20 for Road Improvement Fund on each trip
The Lagos State government has announced a 20 per cent reduction in the operational license fee for e-hailing firms and taxi companies.
Last week, the West African Pilot News reported that the State government ordered e-hailing firms with less than 1,000 drivers to pay N10 million licence fee, while firms with more than 1,000 drivers pay N25 million. Yearly renewal, for firms with more than 1,000 drivers would be N10 million while those with less than N1,000 drivers would pay N5 million.
For taxi and App operators with 50 cabs or less, the State government had demanded an initial licence fee of N5 million and yearly renewal of N1.5 million, while those with more than fifty cabs are to pay N10 million licence fee and N3 million yearly renewal fee.
The state government also demanded a 10 percent service tax on each transaction paid by passengers to the operators.
The new policy prompted criticism of the Lagos State government, with some alleging that the government intended shutting down the operations of e-hailing firms like it did to bike hailing companies in February this year.
However, following a negotiation meeting headed by Governor Babajide Sanwo-Olu to address grievances raised by stakeholders, the government reduced the operational licence fee and renewal fee by 20 per cent.
The Commissioner for Transportation, Dr Fredric Oladeinde, said that the government and stakeholders agreed that N20 Road Improvement Fund should be levied by e-hailing operators on each trip a driver makes daily.
Drivers on e-hailing platforms have also been granted 90-days grace period to perfect their documents, the Commisssioner said.
The implementation of the new agreements reached by all parties would begin from August 27, the government said.
On the issue of the government breaching privacy by requesting information on riders and drivers. The State government said that it only needs the information to help it calculate charges.
“We are not asking the e-hailing companies to release detailed data. All we are asking from them is the trip movement, so that we can calculate the right charge and levy due to the Government. This data is to be supplied weekly.”
The Commissioner for Information and Strategy, Gboyega Omotosho, noted that it was not true that the government was imposing tax burden.
“There is no iota of truth in the speculation that Lagos Government is introducing a new tax regime. The introduction of the new regulations is about the security and smooth running of the business. It is all about ease of doing business in the State,” Omotosho said.
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