Lagos State government on Tuesday announced the introduction of a consolidated informal transport sector levy of N800 daily which is to take effect from 1st of February.
Going by the N800 daily payment, each bus driver will be paying not less than N288,000 annually to the covers of the state goverment.
The new development is being introduced on the heels of a research carrried out by an independent body in 2021, revealing that Lagos generated not less than N125bn annually from collection of levies from trasnport sector.
Speaking during a press briefing in Ikeja to intimate members of the public on the newly introduced system, Commissioner for Finance, Dr Rabiu Olowo said each transporter would be entitled to a tax card daily to have a hitch-free exercise.
The briefing which culminated in the signing of agreement among all the stakeholders in the transport sector, was to harmonize the taxes paid by transporters to the state goverment.
Also in attendance were Special Adviser to the Governor on Transportation, Mr Toyin Fayinka, Chairman and Secretary of Conference of 57, Mr David Kolade and Mr Razaq Ajala respectively.
Others included, Chairman Lagos State Internal Revenue Service (LIRS), Mr Ayodele Subair, MD Lagos State Waste Management Authority (LAWMA), Mr Ibrahim Odumboni, National Union of Road Transport Workers (NURTW), Alhaji Musilihu Akinsanya popularly called MC Oluomo among others.
Olowo said: “Mr Governor has made it a priority to put the interest of Lagosians first that is why we all the stakeholders are here today. Before we came out, we have fought, disagreed and agreed on the need to have our consolidated informal transport sector levy.
“The government of Mr Babajide Sanwo-Olu has inspired that we all come together to have a consolidated levy that takes care of personal income taxes, dues on environment, local government levy and others. We want to reduce the multiplicity of collection of taxes, dues and levies.
“We want to build a reliable database so that all the players will be captured in the same data; we want to have bus drivers with their cards; we want to bring collaborative engagement. The development is a remarkable achievements happening for the first time in the state.”
Olowo said that an average bus drivers currently pays not less than N3,000 daily as levy
“We want to harmonize, to have a single charge of N800. We want to moderate the fee payable to goverment. This is a very insightful breakthrough for all those who do bisiness within informal transport sector in the state,” he added.
In his clarification on the mode of payment, MC Oluomo stated that the N800 would not cover the levy collected by the ‘agberos,’ saying it only affected the taxes and other charges being collected by goverment.
He said: “I want to make it clear that the N800 only cover all the money collected by the MDAs; it does not affect NURTW ticket.”
Special Adviser to the Governor on Trasnportation, Mr Toyin Fayinka explained that with the new development, a bus driver who pays at any given local government at the point of departure, won’t have to pay any levy again in the course of his journey.
“A bus driver from Badagry having paid N800 to Badagry Local Government and going to Mike 2, won’t pay again to Ojo Local Government. The payment at the point of departure takes care of the daily levy and other charges by the government,” Fayinka stated.
Chairman Conference 57, Kolade said the signing of the new agreement is “symbolic and historic,” adding that goverment appreciated the support of Union members in having a hitch-free outcome.