inDrive drivers cry out over double VAT deductions
In today's Techpoint Digest, we discuss how inDrive drivers are outraged by double VAT deductions, how Zambia is going digital with passport applications, and how OpenAI beats Google in the health chatbot race.
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Dia dhuit,<br />
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Victoria from Techpoint here,<br />
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Here’s what I’ve got for you today:<br />
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inDrive drivers cry out over double VAT deductions<br />
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OpenAI beats Google in the health chatbot race<br />
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Passport applications go digital in Zambia<br />
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inDrive drivers cry out over double VAT deductions<br />
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App-based drivers using inDrive are starting 2026 on a sour note. The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) says its members are being hit with double VAT deductions on trip fares, a development drivers say quietly kicked in on January 1 as they resumed work for the new year, per Nairametrics.<br />
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Per AUATON’s South-West vice-president, Kolawole Aina, drivers noticed two separate VAT charges on their invoices: one listed as service payment VAT and another simply labelled VAT. The result, he says, is that total deductions per trip have jumped from about 9.99% to roughly 12.5%, further cutting into earnings that are already under pressure.<br />
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The union says it’s unclear who authorised the extra VAT. Since VAT is a government tax, AUATON suspects the move may involve either the Federal Government or Lagos State, possibly working with the platform. What has angered drivers even more, the union says, is the lack of transparency, with decisions affecting their income allegedly taken without consulting driver representatives.<br />
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AUATON also claims the deductions appear to apply only to app-based drivers, not to flag-down taxis or park-based operators. To make matters worse, the union says inDrive has failed to communicate with drivers or the association, adding that some drivers who don’t comply with the deductions are reportedly unable to accept new ride requests.<br />
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All of this is happening as Nigeria begins implementing new tax laws from January 1, 2026, although the VAT rate itself remains 7.5%. While the Nigeria Tax Act 2025 focuses on digital compliance and revenue reforms, drivers say the situation on inDrive feels like double taxation in practice, and they’re now calling on both the co...
