Uber, Bolt and others to pay N20 per trip to Lagos government

Uber, Bolt and others to pay N20 per trip to Lagos government

The Lagos State government has reportedly imposed a N20 per trip levy on Uber, Bolt and others.

From August 27, Ride-hailing operators in the state of Lagos will begin paying a N20 fee known as the Road Improvement Fund on every trip their drivers make in a day.

The agreement was reached after a three-hour meeting between the Lagos state government and e-hailing ride operators on Friday August 14, 2013.

In a letter issued by the Chief Press Secretary to Governor Gboyega Akosile and entitled ‘Lagos govt, e-hailing operators agree on new regulations,’ the Lagos State Government claims that the new regulations were not instituted by the government to extort operators and drivers in the business, but to regulate ride-hailing operations in line with security measures.

Lagos state Transportation Commissioner, Dr Frederic Oladehinde further disclosed that Governor Sanwo-Olu offered the operators a duty opportunity, that their statutory operating licensing fee and renewal fee by 20 per cent.

The statement added;

“This implies that each e-hailing company will now pay N8 m for fresh licensing and renewal per 1,000 cars, instead of the initially announced N10 m.

“We also addressed the problem of service tax, initially described as a 10 per cent fee. We have come to agree that the levy will become a flat N20 charge per journey.

We don’t call it service tax anymore; we now call it the Road Improvement Fund, which is charged per ride.’

It was also learned that the state government had granted an extension of 90 days to all drivers on the e-hailing platforms to perfect all documents and licenses required for operation, including driver’s license and cards from the Lagos State Residents Registration Agency.

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