Lagos begins new tax system for motorists

The Lagos State Government has introduced a Consolidated Informal Sector Transport Levy of N800 daily for commercial bus drivers, out of which their personal income taxes would be deducted and tax cards issued to them.

Commissioner for Finance, Dr Rabiu Olowo disclosed this at the unveiling of the Consolidated Informal Sector Transport Levy ticket, designed to harmonise dues collected by the government from commercial motorists at parks and garages across the State.

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The State Government had signed an agreement with the local governments, the various transport unions in the State and some government agencies on the collection of dues from commercial motorists.

The daily pegged at N800 is a single structured collection of the monies payable to all government agencies and parties who are directly or indirectly associated with the transport sector.

As such, the N800 levy covers monies for the local government, clearing of waste from motor parks paid to the Ministry of Transportation, Lagos State Waste Management Agency (LAWMA), and the Lagos State Environmental Protection Agency (LASEPA) among others.

With the harmonised levy, which takes effect from February 1, each commercial bus driver would be expected to pay N800 daily, which accumulates into N24,000 monthly and N292,000 in a year. This is however aside from dues collected by the National Union of Road Transport Workers (NURTW).

Chairman of the Lagos State Chapter of NURTW, Alhaji Musiliu Akinsanya, popularly known as ‘MC Oluomo’ clarified that the N800 Consolidated Informal Transport Sector Levy does not deprive the Union of collecting its normal statutory levy (national union ticket) while he assured that the union dues will now be collected at only one point in a structured manner going forward.

The Special Adviser to the Governor on Transportation, Mr Toyin Fayinka also described the development as the phase one approach towards total restructuring of the transport sector; saying, it is expected to bring sanity to motor parks in line with best practices globally.