Osun speaker seek better tax policy to encourage indigenous startups

The Speaker, Osun State House of Assembly, Mr Adewale Egbedun has stressed the need for a predictable tax system to enhance indigenous participation in the ride-hailing sector.

He also said discouraging multiple taxation will pace way for startups across the country and create job opportunities for the youths.

Speaking at the launch of O3 drive, an indigenous technology-driven ride-hailing company in Osogbo, the Speaker disclosed that the House of Assembly would be willing to support the sector with legislation capable of creating a conducive environment for startups to operate and grow.

He said the harmonisation of taxation undertaken by the state government in 2024 had reduced the stress associated with tax compliance for business owners.

The Speaker said the emergence of O3, the ride-hailing company was significant beyond its commercial value, particularly for its potential to create employment opportunities for young people.

He added that improved transportation services could support tourism in the state by facilitating movement for visitors to cultural and tourist attractions.

While commending Governor Ademola Adeleke for what he described as an enabling environment for businesses to thrive, he said, “business can only thrive when the tax regime is not just predictable but devoid of duplicity.

“As the head of the legislative arm of government, I am assuring the new company and others operating in the sector that the Assembly is open to supporting the industry through appropriate legislation”.

Meanwhile the proprietor of the company, Jimi Oyinlola, urged governments and regulatory agencies at all levels to establish a clearer and more coordinated framework for taxation and regulation of ride-hailing businesses.

He said operators were not opposed to paying lawful taxes or complying with regulations, but needed a system that was “clear, predictable, coordinated and sustainable.”

Oyinlola said the reported exit of Uber from Nigeria should prompt government and industry stakeholders to review the regulatory environment governing ride-hailing operations.

He called for regular engagement between government and operators on taxation, licensing, vehicle standards, insurance, driver welfare, security and other regulatory requirements.

“Businesses should be able to know what they are expected to pay and comply with without facing overlapping or unpredictable demands from different government agencies”, he said.

He also urged the government to encourage indigenous mobility companies, saying local operators had a better understanding of the peculiarities of Nigerian cities, roads, the economy and the people.

While stating that the company, which commenced operations in Osogbo, planned to expand beyond Osun State, he added that the company would provide different mobility options while prioritising passenger safety through driver verification, professionalism, responsible driving and a customer feedback system.