New Taxes: Uber, Bolt And Other Ride-Hailing Vehicle Owners To Pay Vehicle Income Tax From 2024
- The Ghana Revenue Authority has issued a notification to ride-hailing vehicle owners regarding the implementation of a new tax policy
- Ride-hailing car owners on platforms like Uber are now required to pay a Vehicle Income Tax from January 1, 2024
- The Ghana Revenue Authority released a statement with guidelines for ride-hailing companies and users to adhere to
Ride-hailing vehicle owners on platforms like Uber and Bolt will pay a new Vehicle Income Tax (VIT) from January 1, 2024.
This new tax is in line with Section 22 of Regulations 2016, LI 2244, which says any commercial vehicle owner who earns income from operating a commercial vehicle shall pay income tax quarterly.
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The Authority has notified ride-hailing companies to update their digital platforms to integrate the new tax requirements.
Guidelines for compliance were outlined in a statement, which included obtaining and validating a softcopy VIT sticker.
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The GRA said these requirements will be enforced on January 1, 2024.
Wisdom Konadu Quaye, the President of the Online Drivers Association, said to YEN.com.gh his union was caught off guard by the announcement.
"This is surprising to all of us... All we heard is they are coming to impose taxes on us. We were not happy when we heard it.”
According to him, the average driver spends 75 percent of earnings on fuel and maintenance and this tax may worsen their plight.
But he noted that the drivers were yet to get clarity on how the tax would work.
"We were not part of a committee or anything," he added.
GRA cashing out from betting tax
The Ghana Revenue Authority has accrued GH¢15 million in its first two months from its recent tax on sports betting winnings.
The Authority has said it is targeting GH¢60 million by the time the current football season ends.
The GRA introduced a 10% withholding tax on betting on August 15, 2023, to raise about GH¢400 million annually.
No new tax on bloggers
The Ghana Revenue Authority clarified earlier that no new tax is being created for bloggers, brand influencers, and MCs.
The Authority said it is trying to expand the tax net by ensuring the incomes of bloggers, brand influencers and MCs are taxed.
While the GRA refuted speculation that it is creating a new tax, it has stressed that all income generation must be taxed.
Parliament passes New Revenue Bills
In April 2023, YEN.com.gh reported that Parliament passed three major revenue bills to improve Ghana's economy.
The new bills were the Growth and Sustainability Levy Bill of 2022, the Excise Duty Amendment Bill of 2022 and the Income Tax (Amendment) Bill of 2022.
Parliament, however, did not pass these bills unanimously because of stiff opposition from the Minority.
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Source: YEN.com.gh
