Download the full document – Guidelines for Online Hailing Business Operation of Taxi in Lagos State, 2020 (PDF). We received the complete document and are happy to share with the community. From TC Daily, a good summary below:
Come August 20, Guideline for On-Line Hailing Business Operation of Taxi in Lagos will come into effect. It is the Lagos State government’s approach towards regulating the ride-hailing sector in the commercial city and has been the cause of concern since last year when its existence was first hinted at. Both motorcycle and taxi operators have been at regulatory loggerheads with the state government since 2018. In January, the state government announced the ban of motorcycles, including the tech-enabled operators, from major areas in the state to the outrage of users and the operators. There was a peaceful march afterwards to protest the ruling. As was speculated then, the law now mandates operators to acquire a provisional license at N10 million (about US$26,000) per 1,000 vehicles or less; N25 million (US$65,000) for a fleet above 1,000 and renew annually at N5 million and N10 million respectively. The state government is also asking for a 10% service tax on every ride the operators complete (Source: TC Daily)
e-HAILING TAXI OPERATION
4.1 TAXI/OPERATOR’S DOCUMENTATION
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- Service Entity Permit Provisional Licence Application/Renewal
No entity shall operate as a Support Entity in Lagos State without first having obtained a Support Entity Permit from the Licencing Authority.
- The Service Entity Permit must apply for Operator’s Provisional Licence prior to operation and a payable fee of ?10,000,000.00 (Ten Million Naira only) for 1000 (One Thousand) units of E-hailing
- The Service Entity Permit must apply for Operator’s Provisional Licence prior to operation and a payable fee of ?25,000,000.00 (Twenty-Five Million Naira only) for 1001 and above (One Thousand and One above) units of e-Hailing
- The Service Entity Permit Provisional Licence is subject to annual renewal with a renewable fee of ?5,000,000.00 (Five Million Naira only) for every 1000 (One Thousand) unit of E-Hailing
- The Service Entity Permit Provisional Licence is subject to annual renewal with a renewable fee of ?10,000,000.00 (Ten Million Naira only) for every 1001 and above (One Thousand and One above) unit of E-Hailing
- All Operators of e-Hailing Taxi Services must pay the State Government 10% Service tax on each transaction paid by the passengers to the operators.
- The Service Entity Permit must commence the renewal process 3 (Three) months before expiration of the existing
- The Service Entity Permit must have a quarterly meeting with the Ministry of Transportation for Operational updates and
- The Service Entity Permit must operator under a particular franchise as no single operator/operation will be
- On payment of the permit fee, the Licensing Authority shall issue a Support Entity Permit to the
- All Operators of e-hailing taxi services must give the Ministry access to their database.
- All Operators of e-hailing taxi services must abide to rules and regulation guiding Lagos State Public Transportation System.
The Lagos’ 10% Service Tax on Uber, Bolt, etc with up to N25 Million License Fee
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After collecting 10% per trip, will the same company still pay company tax? Only profit is taxed, now the government wants to tax revenues too, without minding the operating cost. So, even when you are running at a loss, the government is still collecting taxes.
It’s obvious that many people are bewitched in the land, a sort of exorcism is inevitable.
Its so unfortunate that this government do not have the interest of the people at heart. Why should the government be so callous and wicked after taxing these companies of so much how do they expect them to still survive.
Can you see how the government keeps killing businesses without any encouragement whatsoever
Can you see how in their own myopic and insensible way of thinking their indirectly putting people away from jobs and increasing the rate of crime.
The youths are willing and ready to work but the simply frustrate our efforts and make it so unconduscive to strive for greatness.
Sometimes I ask myself what have we done to these people to deserve such callousness
Now I see why the rich will remain richer and poor will remain poorer.
Was going to set up business I Lagos but with this I will set up in another state. The rest of Nigeria is a bigger market than Lagos alone. Thanks for this information. Lagos is a harsh place for start ups. So much for this government to claim to help new generation businesses. This is a method to increase poverty. No job and you can’t create one for yourself.