The House of Representatives has resolved to investigate tax compliance by vehicle transport companies and other technology transport companies.
Following the adoption of a motion tabled by Ganiyu Johnson (APC, Lagos) on Thursday, the House resolved to establish an ad hoc committee to investigate companies’ tax returns.
The committee, which has not yet been constituted, must investigate the level of compliance of all transport companies with the help of information and communication technology (ICT) with the current tax laws of the country and report within four weeks for a more legislative action.
Johnson said that while vehicle transport companies take 20-25% as a commission from drivers who use their rigs and also use government-built roads, it is unclear whether they are complying with the tax laws of the country.
He said that ICTs have had a significant impact on the way organizations operate as they offer enormous opportunities such as storing, processing, retrieving, disseminating and exchanging information.
“Average weekly earnings of Bolt and Uber Drivers are around N60,000 to N120,000, while companies get 20% and 25%, respectively, as commission from the earnings of each driver that operates on their platforms.
“Companies have benefited from the facilities of the federal government such as the road and security network that makes it easy for them to do business, so they must be fully responsible and up-to-date on tax remittances,” he said.
Johnson, therefore, expressed concern “whether companies fully comply with the requirements of the Business and Allied Affairs Act, taking into account that the services are performed online.”
When the motion was challenged by Vice President Idris Wase (APC, Plateau), the “yeses” had it.
The government has been making efforts to generate money from international tech companies.
On Monday, the Minister of Finance and National Planning, Zainab Ahmed, revealed that the government was making efforts to get platforms like Amazon to collect VAT.