Lagos launches new tax system for motorists
The Lagos State Government has introduced a consolidated informal sector transport tax of N800 per day for commercial bus drivers from which their personal income taxes would be deducted and tax cards issued to them. .
Finance Commissioner Dr Rabiu Olowo revealed this during the unveiling of the Consolidated Informal Sector Transport Tax ticket, designed to harmonize the levies collected by the government from commercial motorists in car parks and garages across the country. ‘State.
The state government has signed an agreement with local governments, the various state transportation unions, and some government agencies on collecting dues from commercial motorists.
The daily indexed to N800 is a unique structured collection of sums payable to all government agencies and parties that are directly or indirectly associated with the transport sector.
As such, the N800 levy covers funds for local government, car fleet waste cleanup paid to the Ministry of Transport, the Lagos State Waste Management Agency (LAWMA) and the Lagos State Environmental Protection Agency (LASEPA), among others.
With the harmonized tax, which comes into effect on 1 February, each commercial bus driver would have to pay N800 per day, which accumulates to N24,000 per month and N292,000 per year. This is, however, apart from the dues collected by the National Union of Road Transport Workers (NURTW).
NURTW Lagos State Chapter Chairman Alhaji Musiliu Akinsanya popularly known as ‘MC Oluomo’ clarified that the bound informal transport sector tax N800 does not deprive the Union of levying its normal legal tax (national union ticket) while ensuring that the union dues will now be collected at a single point in a structured way in the future.
The Governor’s Special Advisor for Transport, Mr. Toyin Fayinka, also described the development as the first phase of the approach towards the total restructuring of the transport sector; saying, fleets are expected to be sane in accordance with best practices globally.