FG takes steps to eliminate the multiple tax system in the transport sector

By Adedapo Adesanya

The federal government has unveiled its intention to eliminate multiple taxes in the transportation sector to reduce the cost of doing business in the country.

This was stated by the Permanent Secretary of the Federal Ministry of Transport, Ms. Magdalene Ajani, during a two-day conference and exhibition organized by the National Transportation Technology Conference and Exhibition (NTTCE) on Wednesday in Lagos.

She said streamlining various taxes in the sector was necessary to enhance growth and development.

The theme of the conference was Federal-Subnational Intergovernmental Cooperation in Homogeneous Policy, Regulatory, and Fiscal Regimes: The Role of the Natural Gas Expansion Program.

Ms. Ajani said multiple taxations were detrimental to business development and sustainability, noting that one of the issues affecting the sector was unregulated taxation which had affected the cost of doing business in the country.

She said the law that governs the transportation sector in the country takes into account the roles of federal, state and local governments.

Ms Ajani said it was up to a particular level of government to decide what type of segment to cover, such as car parks and licenses for divers and vehicles, among others.

“What we are seeing is that there are multiple road vignettes being sold by different groups of people to road users.

“So this tends to increase the cost of doing business on road transport and needs to be regulated.

“Those who claim that the Federal Department of Transport gave them permission to collect money on its behalf are not correct,” Ms Ajani said.

Also speaking, the Lagos State Commissioner for Transport, Mr. Frederic Oladeinde, praised the Federal Government’s efforts to tackle multiple taxations in the sector, adding that the development would help state governments in their policies. transport.

He said technology was the way forward to lead the sector to make it more effective and efficient.

“We have deployed a lot of technology in Lagos, we are talking about Cowry cards to integrate the mode of transport.

“We are considering integrating the mode of transport timetables to reduce the waiting time,” he said.

The Lagos State Sector Commander, Federal Road Safety Corps, Corp Commander, Mr. Olusegun Ogungbemide said the corps has used technology to improve the way it operates.

He said the technology has helped reduce response time to accident scenes and electronic ticketing when issuing tickets for traffic violators.

He said the body would continue to ensure our roads were safe and accident-free.

Nigeria Transportation Commissioners’ Forum Secretary, Ms. Chinwe Uwaegbute, said the conference brought together all major stakeholders in the transport sector to craft policy to move the industry forward.

She said, “The conference brought out many issues such as the challenges of double taxation, the need for interconnectivity for all modes of transport to facilitate business.

“The outcome of this conference would pave the way for better growth and development of this sector.

“The Federal Ministry of Transport is also part of this conference and we hope that the points raised here will be used to generate policies that will promote the growth of the sector.”

Comments are closed.