The Lagos State government has signed an MOU to harmonize all dues and levies collected by government from commercial motorists at parks and garages across the State.
Known as the “Consolidated Transport Sector Levy” the collection of the levy is with immediate effect.
Addressing newsmen in Alausa Ikeja during the MOU signing ceremony, the Commissioner for Finance, Dr Rabiu Olowo explained that the single structured levy, pegged at a flat rate of eight hundred naira only, N800, per day, would eradicate multiplicity of levies payable to government and also enable the State to further boost data and taxes from the informal sector.
According to Dr Rabiu Olowo, the levy covers dues previously paid by the National Union of Road Transport Workers, NURTW, and
Road Transport Employers Association of Nigeria,RTEAN, to local councils across the state, revenue for managing waste and pollution within the motor parks as well as other Ministries, Dept and agencies of government and Personal Income Taxation for the Transporters.
“The 800 naira 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 organize the collection and reduce the multiplicity of levies and all sort of taxes, dues and monies payable 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”
The Commissioner who alluded to an unsubstantiated report that the
NURTW earns over a hundred and fifty billion naira in revenues, explained that the Consolidated Transport1@1%~ Sector Levy will further boost monies coming into government coffers.
On his part, the Special Adviser to the Governor on Transportation, Mr Toyin Fayinka, stated that the development is the first step towards a total restructuring of the transport sector in line with best practices globally.
The Chairman of the State Inland Revenue Service, Mr Ayodele Subair expressed joy at the inclusion of the union in internal revenue generation and assured the transporters that tax cards would be made available to them
On his part, the State Chairman of the NURTW, Alhaji Musiliu Akinsanya, popularly called “MC Oluomo” who spoke on behalf of both Unions explained that they had approached government to consolidate the levies to make it easier for them.
McOluomo further clarified that the Consolidate levy is outside the unions dues collected by the two bodies.
“The harmonized levy will not affect the national Union tickets, it was the Unions that approached the government to help us harmonize the payment of all the levies it had been collecting to prevent duplication” he said.
The Chairman of the Association of all Local Government Chairmen, Mr. David Kolade, who was part of the ceremony described the harmonized levy as a win-win situation for all stakeholders in Lagos State.
The ceremony was attended by the Managing Director of LAWMA, Ibrahim Odumboni and representative of the Managing Director of LASEPA.