• Friday, April 26, 2024
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Lagos pegs daily levy on transporters at N800

High transport cost driving surge in clothes, food prices

Starting from February 1, operators in the informal transportation sector of Lagos State would be required to pay a consolidated N800 daily levy.

The new amount, according to Rabiu Olowo, the commissioner for finance, is down from about N3,000 being demanded from the transporters by various agents operating in the state, some of whom are unknown to the government.

To ensure effective implementation of the new levy, the state government, on Tuesday, signed an agreement with stakeholders in the transportation sector. They include the National Union of Road Transport Workers (NUTRW), and Road Transport Employers Association of Nigeria (RTEAN), as well as the other relevant departments and agencies of the government.

At the unveiling of the official ticket to drive the process, Olowo said the harmonisation became necessary to lessen the burden that transporters bear as a result of these exorbitant levies.

However, Musiliu Akinsanya, chairman of, Lagos chapter of the NURTW, has said the N800 would not stop the union from collecting its statutory levy from transporters in the state.

Read also: More federal roads to enjoy tax credit funding – Buhari

He said the state government carried out a survey six months ago and discovered that an average transporter pays N3,000 daily as levies. According to him, most of the monies being paid by the transporters are lost to unknown agents, therefore, the need to regulate the levies and sanitise the informal transportation sector.

Olowo said the consolidated N800 levy was a phased approach to the transportation sector reform. He added that the reform would help to get a comprehensive database of transporters for better planning.

He listed the benefits of the harmonised levy to include a structured collection process, elimination of multiple taxes, dues, and levies by all agents of state and local governments.