Daily N800 Fee Covers Personal Income Taxes of Drivers, Others—LASG

By Modupe Gbadeyanka

The Lagos State Government has clarified that the newly introduced N800 daily Consolidated Informal Transport Sector Levy in the state was a structure put in place to reduce multiple taxes, dues and levies to all agents of state and local governments.

On Tuesday, the Commissioner for Finance, Mr Rabiu Olowo, at a ceremony in Alausa, officially unveiled the scheme along with other stakeholders. It was to harmonise dues collected by the government from commercial motorists at parks and garages across the state.

The commercial drivers were asked to pay a flat fee of N800 daily with effect from Tuesday, February 1, 2022, and it covers local government levy, fee for clearing waste from motor parks and personal income taxes of the drivers, with tax cards issued to them.

According to Mr Olowo, “The 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.

“What the government has done is to organise the collection and reduce the multiplicity of levies and all sorts of taxes, dues and monies due to government from the transport unions.

“Bus drivers will get tax cards, and the issue of arbitrary payments will be eradicated once they pay from the point of their loading each day.”

However, the Chairman of the Lagos State chapter of the National Union of Road Transport Workers Union (NURTW), Mr Musiliu Akinsanya, popularly known as MC Oluomo, emphasised that the daily N800 fee does not include the union’s normal statutory levy.

“The harmonised levy will not affect the national union ticket. What it is aimed at consolidating are all the levies collected by the government and it was the unions that approached the government to help us harmonise the payment of all the levies it has been collecting to prevent duplication of levies,” the transporter said.

The Special Adviser to Governor Sanwo-Olu on Transportation, Mr Toyin Fayinka, while also speaking at the event, said the development is the first approach towards a total restructuring of the transport sector.

According to him, all stakeholders were duly consulted before the final signing of the Memorandum of Understanding (MoU), which is aimed at bringing sanity into motor parks in line with best practices globally.