For months now, the government has been considering ways to regulate the industry. And with approval from Governor Babajide-Sanwo-Olu, the state government has now drafted its license and renewal fees which the tech-driven taxis will have to pay in order to operate within the state.

The financial regulation follows the Lagos State government banning motorcycle operations on its highways, and in most local government areas.

The New Financial Regulations

With the new regulations, car-hailing services that have been operating without much state regulation will be made to pay N10 million as license fee if they have about 1000 registered cars, while companies with over 1000 registered cars will pay N25 million as license fee.

In the same vein, these car-hailing companies must renew their license annually. The renewal attracts another fee, with app-based services with 1000 and below cars paying N5 million, while others with 1000 and above registered cars paying N10 million yearly.

While the license and renewal fees are for the companies, the state government also regulated the drivers as well, with drivers expected to remit 10% of each trip to the state government as service charge.

Most importantly, the car-hailing services are also compelled to obtain LASDRI cards and also carry a badge issued by the department of public transport and commuter services of the state ministry of transport.

What this means

The license and renewal fees might chase some car-hailing services out of the Lagos state, especially the smaller services like Oga Taxi, and InDriver, which are not raking the number of trips Uber and Bolt are recording each day.

These smaller services are projected to have less than 500 cars registered on their app. And as a result, their incomes may be lesser than the market leaders. So the payment of N10 million might drill a hole too deep for them to fill in time for the renewal of their license.

The post Lagos Government To Charge Uber, Bolt N25m, N10m For License appeared first on Business News in Nigeria.

The report which detailed how NIMCO had defrauded the government to the tune of several hundreds of millions, which includes non-payment of tax, was read to lawmakers by Hon. Victor Akande, the chairman of a seven-man committee set up to prove the illegal activities of dredgers in the state.

In the report, NIMCO was found guilty of failing to pay taxes and make returns, and also engaging in the reclamation of land.

Akande however enjoined the House to give the investigative committee additional two weeks to wrap up its works as it intend to embark on inspection tour of the company’s dredging sites.

Responding to the outcome of the investigation, Mudashiru Obasa, the Speaker of the Lagos State House of Assembly, directed the Clerk of the House, Azeez Sanni, to write Governor Babajide Sanwo-Olu of the state, and intimate him on the preliminary findings of the committee.

What you should know

One of the ways the Lagos State Government deployed to remediate tax default is the imposition of penalties on unremitting taxes and levies as stipulated by the laws of the state. Needless to mention, penalties are sacrosanct for defaults such as failure to send a tax return or pay tax liabilities as at when due.

Why this matters

Unmask NG believes that the Sanwo-Olu-led administration will not let this slide. This is because tax evasion has automatically reduced the state government’s projected budget. More so, the tax evasion has denied Lagos tax revenue due to the system, which results in a typical gap between the potential and actual tax collections.

About NIMCO 

Incorporated in 1987, NIMCO Construction Company Ltd is a civil and building engineering firm with cognizant recognition in Nigeria, and its head office located in the economic nerve center of the country; Lagos State.

The post NIMCO Risks Serious Sanction For Failing To Meet Its Tax Obligations appeared first on Business News in Nigeria.