Lagos State Government announced a reversal of its proposed plan to impose a 10 per cent service charge on every trip made through e-hailing platforms like Uber and Bolt.
Dr Frederic Oladeinde, the state Commissioner for Transport, made the announcement on Friday, after a three-hour meeting of Governor Babajide Sanwo-Olu, some executive council members and e-hailing operators at Lagos House, Marina.
In a communique read out to newsmen shortly after the meeting, Dr Oladehinde said the e-hailing operators would now be required to pay N20 as Road Improvement Fund (RIF) instead of the initial 10% charge termed previously as service tax, adding that it would be levied on each trip the drivers undertake in a day.
He said the new regulation would take effect from Thursday, August 27; a one-week extension from August 20 initially announced, to enable compliance from the operators.
He added that Governor Sanwo-Olu offered a duty incentive to the operators, reduced their statutory operational licencing fee and renewal fee by 20 percent.
“The regulations for the e-hailing companies will take effect from August 27, 2020. We have given an additional one-week extension for all operators to comply,” the commissioner stated.
“Given that most of the drivers on the e-hailing platforms have third party insurance, the companies will have comprehensive insurance for each driver while the driver is working with them. The insurance will also cover passengers, which amounts to double insurance for the driver.
“We also discussed the issue of service tax, which was initially defined as 10 percent charge. We have come to the resolution that the levy will become a flat fee of N20 per trip. We no longer call it service tax; we now call it Road Improvement Fund, which will be levied per trip.
“We also came to the resolution that there will be a reduction in operational licence by 20 percent. Likewise, the renewal fee has been reduced by 20 percent, going forward.”