The umbrella union for e-hailing drivers, Amalgamated Union of App-Based Transporters of Nigeria, on Thursday decried double VAT deductions on the trip fares of one of its members, inDrive.
AUATON vice-president South-West, Kolawole Aina, said in Lagos that inDrive e-hailing drivers suddenly discovered this double taxation on January 1, 2026.
Mr Aina said that one of the VATs was termed service payment VAT on their invoices, while the other was simply termed VAT.
“Our inDrive members were ushered into the New Year 2026 with what we can only term an excessive tax burden following a new deduction regime. The policy has pushed total commission and tax deductions on the inDrive drivers’ platform from the initial 9.99 per cent to about 12.5 per cent per ride.
“We do not know who inspired the taxes, but since VATs are usually charged and collected by the government, we can only suspect that the tax was imposed by either the Lagos State Government or the Federal Government in collaboration with the app company,” he said.
He decried the situation in which app companies and the government reach decisions in their meetings and do not communicate them to the drivers affected.
The AUATON executive noted that meetings between app companies and the government should also include driver representatives.
“This double taxation is a burden. They have put burdens on us. We have been complaining that our earnings are not enough, but now we are being charged additional expenses.
“To our knowledge, this tax does not affect other categories of transport operators such as the flag-down taxis, park-based drivers and other transporters. We have tried and are still trying to get the inDrive app company to explain what is happening to us, but to no avail.
“The company is not responding to calls or messages. Maybe they have changed their contact phone numbers. They also have an email policy that responds to enquiries by individuals alone, which is against our association’s policy,” Mr Aina said.
He said that the way the tax was being charged, if a driver did not pay the double tax on a trip, he or she would be unable to pick the next ride.
The AUATON executive urged the app company to communicate and explain the new deduction regime to its drivers.
He also appealed to the federal government to include its members in its policies, emphasising, specifically, the CNG conversion for transporters.
(NAN)
