Afrigather Trip-hailing drivers in Ghana are pushing again towards a plan by the nation’s income authority to impose a vehicle income tax, arguing that it could put a pressure on their incomes.
A part of the brand new tax discover, which is anticipated to enter impact on January 1, 2024, states that “any industrial automobile proprietor that earns revenue from the operation of a industrial automobile shall pay revenue tax on a quarterly foundation.”
Trip-hailing corporations—Uber, Bolt, and Yango—are anticipated to confirm that their driver companions have paid VIT earlier than permitting them to function on their platforms. Per the discover by the Ghana Income Authority (GRA), ride-hailing corporations are required to demand a smooth copy of the VIT sticker from their drivers, validate the authenticity of the stickers with the GRA, and submit the checklist of all automobiles on their platforms quarterly to the GRA.
A number of drivers who spoke to TechCabal stated the brand new tax was a shock as they already pay a fee to the ride-hailing corporations. The drivers argue that the tax burden ought to fall on ride-hailing corporations as an alternative of particular person drivers. Bolt and Uber cost a 20% fee on each journey, whereas Yango reportedly takes 18%.
“Many people already wrestle as a result of present fee buildings,” Kwame, an Uber driver, informed TechCabal. “Including one other layer of tax on prime of gasoline prices and automotive upkeep is like including extra to our issues.”
“They’re dishonest us,” stated John, one other ride-hailing driver. “I do know many drivers sitting at house as a result of they aren’t glad with the fee taken by the ride-hailing corporations. So if Ghana Income Authority imposes a brand new tax on us, how will it have an effect on the fares?”
In response to a breakdown on GRA’s web site, ride-hailing automobiles fall underneath “Class A” and can pay 12 Ghana Cedis quarterly, totaling 48 GHC yearly. The company mandates all industrial automobile operators to purchase VIT stickers from any Home Tax Income Workplace. The sticker is anticipated to be pasted on the automobile’s entrance windscreen.
The brand new regulation is Ghana’s newest try and impose taxes on ride-hailing corporations. In April, Ghana’s Driver and Car Licencing Authority (DVLA) introduced the “Digital Transport Guidelines,” which imposed a levy on each ride-hailing journey.
The levy meant that every one 5 ride-hailing companies working in Ghana would foist a further cost of 1 Ghana cedis passenger utilizing their platforms. Nonetheless, the transfer was criticized by residents who already felt the pinch of a flagging financial system. Ghana has one of many lowest tax-to-GDP ratios in Africa. In response to a report by the Organisation for Financial Co-operation and Growth (OECD), Ghana’s tax-to-GDP ratio in 2021 (14.1%)—its highest ever—was decrease than the common of the 33 African international locations in 2023 (15.6%).
