Reps to probe tax compliance by Bolt, Uber, other car-hailing companies

The House of Representatives has resolved to investigate tax compliance by car-hailing companies and other tech transport firms.

Following the adoption of a motion moved by Ganiyu Johnson (APC, Lagos) on Thursday, the House resolved to set up an ad hoc committee to probe the tax returns of the companies.

The yet-to-be constituted committee is to investigate the level of compliance of all Information and Communication Technology (ICT)-aided transport companies with the country’s extant tax laws and report back within four weeks for further legislative action.

Mr Johnson said while car-hailing firms take 20-25% as commission from drivers using their platforms and also use roads built by the government, it is unclear if they are complying with the tax laws of the country.

He said ICT has had significant impacts on the way organisations operate, as it offers tremendous opportunities such as storing, processing, retrieving, disseminating and sharing of information.

“Average weekly earnings of Bolt and Uber drivers are about N60,000 to N120,000 while the companies take off 20% and 25% respectively as commission from the earnings of each driver operating on their platforms.

“The companies have benefited from facilities of the federal government such as road and security network which grant them ease of doing business, thus they ought to be fully accountable and up to date in tax remittances,” he said.

Mr Johnson, therefore, expressed concerns “whether the companies are fully compliant with the requirements of the Companies and Allied Matters Act, considering that the services are made online.”

When the motion was put to question by Deputy Speaker Idris Wase (APC, Plateau), the “ayes’ had it.

Source: Premiumtimesng.com