In News by Oluwaseun Samuel on the 12th, August, 2020

Uber, Others Might Shut Down As Lagos Govt Enforces New Laws From August 20

Uber, Others May Close Down As Lagos Govt Enforces New Regulations From August 20




A brand new regulation to be applied in late August by the Lagos State Authorities could deliver an finish to many companies together with ride-hailing providers like Uber, Taxify and others.


In response to Guardian, underneath the brand new laws, which have been earlier scheduled to take impact in March, third-party operators like Uber and Bolt which have over 1000 drivers on their platforms pays ₦25 million licencing payment and ₦10 million annual renewal payment.


Those who have lower than 1000 drivers pays a licensing payment of ₦10 million and an annual renewal payment of ₦5 million if they’ve lower than 1000 drivers.


Operators who instantly personal their automobiles and make use of their drivers pays solely the license payment of ₦5 million if such operators have under 50 drivers. Those that have over 50 drivers pays ₦10 million for the working license.


E-hailing operators are additionally to pay 10 per cent “service tax” on “every transaction paid by the passengers” and are mandated to resume their licenses three months earlier than the expiration of the present licence.


The president of the Nationwide Union of Skilled App-Based mostly Staff Ayoade Ibrahim instructed The Guardian on Monday that the brand new laws put a heavy burden on the drivers and expose them to the whims of ride-hailing corporations.


The spokesperson for Lagos State Ministry of Transport Bolanle Ogunlola confirmed that the brand new laws will begin on August 20. She stated the enforcement of the rules won’t begin till after a stakeholder assembly is held.


Ibrahim insisted members of the union should not in opposition to the federal government correctly regulating the trade within the state as they’ve agreed to pay taxes on their earnings to the federal government.

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The same association, he stated, is in place for the unregulated yellow cab drivers.


However the issue is greater than the fee of taxes. The interpretation of the supply of who pays the 10 per cent fee on every journey to the Lagos State Authorities can be contentious.


Part four.1 (v) of the brand new tips says: “All operators of e-Hailing Taxi Providers should pay the State Authorities 10% Service tax on every transaction paid by the passengers to the operators.”


Though based on Ibrahim, state officers stated the service tax will probably be deducted from the fee collected by ride-hailing corporations, the part doesn’t specify if the tax will probably be made on the entire quantity paid by the passengers or the fee paid deducted from such fee by the ride-hailing corporations.


The union feared drivers will nonetheless, instantly or not directly, pay the service tax even when the deduction is made on commissions payable to the ride-hailing corporations.

“If they begin accumulating the 10 per cent and Uber will increase its fee from 25 per cent to 35 per cent can [the] authorities cease them,” Ibrahim requested.


“[The government] should take heed to driver-partners. We’re speaking of worth mechanism, safety, and insurance policies that may leverage competitors.”


Ibrahim accused Bolt and Uber of shunning, at the very least, 5 conferences the drivers’ union had with the state authorities, the newest of which held final Thursday.


Not one of the operators, he stated, have registered with the federal government, placing the operations of the drivers in danger. He stated Uber and Bolt have instructed the federal government that they solely present the know-how to attach drivers to riders.

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“[Government officials] instructed us on Thursday that we must always inform Uber to return and register with the federal government,” Ibrahim stated.

“I instructed them I’m not ready to go and inform Uber to return and pay ₦25 million to the federal government.”


However Ogunlola disputed claims that Uber and Bolt have shunned the conferences. She stated representatives of the 2 corporations have met with the state officers.


When The Guardian reached out to the spokesperson for Uber in West Africa, Efosa Aiyevbomwan, he stated he can’t touch upon the problem and directed our reporter to his colleague Lorraine Onduru. An e mail despatched to Onduru was not instantly replied.


The regional supervisor (West Africa) of Bolt, Uche Okafor, was additionally not reachable on telephone and an e mail despatched to him was not replied.


In an e mail despatched to The Guardian in February, the Uber spokesperson referred to the Nigerian drivers on the corporate’s platform as “unbiased”.


Uber has lengthy maintained that place to keep away from paying taxes, costs and different doable funds to drivers. That stance was dealt a blow in March in France after the French Court docket of Cassation dominated that Uber BV was an employer of a former driver who sued the ride-hailing large.


The motive force sued after his account was deactivated, “depriving him of the likelihood to get new reservations.”


The same order was given in opposition to Uber in June by the California Public Utilities Fee. “For now, TNC drivers are presumed to be staff, and the fee should make sure that TNCs adjust to these necessities which might be relevant to the workers of an entity topic to the Fee’s jurisdiction,” the fee wrote in its order that additionally affected Lyft and different Transportation Community Corporations (TNC).

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Uber drivers are additionally categorized as staff of the corporate in the UK. The corporate is difficult that within the UK’s highest courtroom whereas Bolt is going through litigation that will classify its drivers as staff.


Ibrahim additionally instructed The Guardian that the federal government threatened to drive the drivers off the roads utilizing officers of the infamous Automobile Inspection Providers, also referred to as VIO, till the operators on whose platforms they function pay the charges.


Ibrahim stated the threats have been unfair to him and his colleagues.


4 different drivers who spoke to The Guardian on the matter stated the federal government’s risk of clamping down on them for the “sins” of the ride-hailing corporations is unjust.


The drivers stated they may resist any try and clamp down on their operations.

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