E-Hailing drivers accuse inDrive of double taxation, reject FG’s 7.5% VAT

E-hailing drivers on the inDrive platform have raised concerns over what they describe as double taxation on their earnings. Drivers told Technext that starting January 1, they noticed a 7.5% Value Added Tax (VAT) was being applied twice on each trip.

“One of my first trips this year felt unusually expensive. When I checked the trip details, I realized inDrive had deducted 7.5% VAT twice,” a driver explained.

According to drivers, the first VAT charge is applied on the trip fare, while a second 7.5% VAT is deducted from the company’s commission, which is supposed to cover inDrive’s services. Drivers argue that the second VAT should be the responsibility of inDrive, not theirs.

“Government VAT should apply to inDrive’s commission as a service provider, not to the fare itself. For example, if inDrive charges a 9.99% commission, VAT should only apply to that commission, not added again on the total fare,” the drivers said.

In addition to the double VAT concern, drivers claim that inDrive increased its commission from 9.99% to 12.5%, pushing the total deductions per trip to 20% when combined with the 7.5% VAT applied to drivers.

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Drivers have described the charges as “unacceptable” and are calling for clarity on how the VAT is applied to ensure fair treatment for those providing transportation services on the platform.