FCTA suspends enforcement of drivers, riders’ permit levy
The Federal Capital Territory Administration has suspended the enforcement of a new levy for drivers and riders after discussions with cycling leaders amid concerns over multiple taxation.
The Federal Capital Territory Administration (FCTA) has announced the suspension of the enforcement of the Drivers and Riders Permit Levy. This decision was communicated by the Mandate Secretary, Dr. Chinedum Elechi, in a directive issued to First Capital Cargo Ltd, which was responsible for collecting the levy. Elechi stated that this action came after a meeting held on February 19 with leaders of the Association of Dispatch Riders in Abuja, where concerns about multiple taxation from various authorities were raised.
During the meeting, the stakeholders expressed their concerns regarding the financial burden imposed by reliance on the required permit levy amidst other taxes from different governmental bodies. In response to the criticisms and the need for further consultation, Dr. Elechi has instructed that the enforcement of the collection be put on hold until there is more engagement with all relevant stakeholders to ensure a more comprehensive understanding and resolution of these taxation issues.
This development indicates a significant shift in the approach of the FCTA regarding the enforcement of levies impacting transportation and delivery services in the capital. It highlights the importance of stakeholder engagement in policy implementation, especially when it comes to matters that can affect the financial stability of those operating within the transportation sector. The eventual outcome of these engagements could lead to more inclusive and fair taxation policies that consider the operational realities faced by drivers and delivery riders in the Federal Capital Territory.