E-hailing drivers operating on the inDrive platform have raised the alarm over alleged double Value Added Tax (VAT) deductions on their trip fares, describing the charges as excessive and poorly explained.
The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) said drivers first noticed the new deductions on January 1, 2026, when operations resumed for the new year.
Speaking to the News Agency of Nigeria (NAN) in Lagos, Mr Kolawole Aina, AUATON’s South-West Vice-President, said drivers observed two separate VAT charges on their invoices, one listed as service payment VAT and another labelled simply as VAT.
According to the union, the development has pushed total commission and tax deductions on inDrive rides from 9.99 per cent to about 12.5 per cent per trip, further eroding drivers’ earnings.
AUATON said it was unclear who introduced the additional VAT charge, but noted that VAT is government-imposed, raising concerns about possible involvement of federal or Lagos State authorities, allegedly without proper consultation with drivers.
“This double taxation is a burden. Drivers are already struggling with low earnings, and now extra deductions are being imposed without explanation,” Aina said.
The union also criticised what it described as a lack of transparency, claiming that decisions affecting drivers are often made between government agencies and app companies without drivers’ representatives.
AUATON accused inDrive of failing to communicate with drivers or the union, adding that attempts to get clarification from the company had been unsuccessful.
“The company is not responding to calls or messages, and their email system only responds to individual drivers, not the union,” Aina said.
He further alleged that drivers who do not comply with the deductions are unable to accept new ride requests on the platform.
The union has called on inDrive to urgently engage drivers and clearly explain the deduction structure, while also urging the Federal Government to ensure app-based transporters are consulted on policies affecting their livelihoods.
As of the time of filing this report, inDrive had not responded publicly to the allegations.
