Members of the Amalgamated Union of App-based Transporters of Nigeria (AUATON) say they were ushered into the new year 2026 by the government and the inDrive app with a tax burden of 10 per cent deducted from every trip.

According to the union, the development increased commission deductions on the inDrive app from an initial 9.99 per cent to 20 per cent and above.

AUATON National Ex-officio, Jossy Adaraniwon, said a preliminary investigation showed what he described as a double VAT burden on members’ services, arising from a lack of transparency and accountability in the app’s invoice narration.

“The government’s 7.5 per cent VAT against the inDrive 4.99 per cent commission service charge can only apply to the amount due to inDrive as commission, which should be between the company and the government, and not on the trip fare that has already been charged 7.5 per cent VAT,” he said.

He added: “This means the total commission should be 12.5 per cent, being 4.99 per cent commission plus 7.5 per cent VAT. However, from the invoice narration, all indications show that inDrive has increased its commission from 9.99 per cent to 12.5 per cent, contrary to its claim of 4.99 per cent.”

Adaraniwon said the union was calling on the Federal Government to reconsider the VAT imposed on app-based transport services, describing it as discriminatory, unjustifiable and unfair.

“Other flag-down transporters operating on the streets, at garages and car parks are not levied VAT for rendering the same service, which is exempted under the new tax administration. Imposing a 7.5 per cent VAT on e-hailing transportation services provided by our members adds an unnecessary burden on their income, affects their purchasing power and lowers their standard of living,” he said.