The Amalgamated Union of App Based Transport Operators of Nigeria AUATON has rejected a proposed ten percent tax on e hailing trips, warning that the policy could cripple the industry and worsen economic hardship for drivers and passengers.
In a statement, the union argued that app based drivers are already burdened by high operational costs including fuel, vehicle maintenance, platform commissions, and multiple levies imposed by different authorities. According to AUATON, adding another tax would be unsustainable.
Union leaders warned that drivers may be forced to increase fares, reducing affordability for commuters and potentially pushing riders back to informal transport options. They also cautioned that some drivers could exit the industry entirely, leading to job losses.
AUATON stressed that the e hailing sector has contributed significantly to employment and urban mobility, particularly for young Nigerians. It called on the government to engage stakeholders before implementing policies that affect livelihoods.
The union proposed alternative approaches, including tax harmonization and incentives that encourage compliance rather than punitive measures. It argued that expanding the tax base through growth would yield better results than imposing heavy levies.
Government officials have defended the proposal as part of efforts to increase internally generated revenue, but critics insist that timing is inappropriate given current economic pressures.
As negotiations continue, AUATON vowed to resist policies it considers unfair, urging authorities to adopt a more inclusive and realistic framework.
