Drivers operating on the inDrive ride-hailing platform have raised concerns over what they describe as double Value Added Tax (VAT) deductions on their earnings, sparking fresh debate about transparency and fairness in Nigeria’s digital mobility ecosystem. The complaints, which have been circulating across driver forums and social media platforms, suggest that some drivers are being charged VAT more than once per trip, significantly reducing their take-home income.
According to affected drivers, VAT appears to be deducted first from passengers’ fares and then again from drivers’ commissions or payouts. They argue that this practice amounts to double taxation, especially at a time when fuel prices, vehicle maintenance costs, and inflationary pressures are already squeezing their margins. For many drivers who rely on ride-hailing platforms as their primary source of income, the alleged deductions have made daily operations increasingly unsustainable.
Several drivers claim that the deductions are not clearly explained within the app, leaving them confused about how fares, commissions, and taxes are calculated. Some say they only noticed the issue after carefully reconciling completed trips with their final payouts. “You complete a ride, think you know what you’ll earn, and by the time the payment reflects, it’s far less than expected,” one Lagos-based driver lamented. “When you check closely, VAT seems to have been applied twice.”
The controversy comes amid heightened scrutiny of how ride-hailing and digital platforms apply statutory taxes in Nigeria. Under existing regulations, VAT is typically charged on services rendered, but stakeholders have long debated who bears the responsibility—the platform, the service provider (driver), or the end user. Drivers insist that while they do not oppose paying legitimate taxes, deductions must be clear, lawful, and applied only once.
Industry observers note that the issue underscores a broader challenge within the gig economy: limited financial literacy tools and insufficient transparency around platform fees and statutory charges. Without clear breakdowns, drivers are left vulnerable to misunderstandings and mistrust, which can quickly escalate into public disputes.
As of now, drivers are calling on inDrive to issue a detailed explanation of its VAT structure in Nigeria and to refund any excess deductions if errors are confirmed. Some have also urged regulators, including the Federal Inland Revenue Service (FIRS), to clarify VAT obligations within the ride-hailing sector to prevent future disputes.
How inDrive responds to these complaints may shape not only driver confidence in the platform but also wider conversations around accountability, tax compliance, and fairness in Nigeria’s fast-growing digital economy.
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