GRA slaps more tax on ride-hailing drivers in Ghana

The Ghanaian government through the Ghana Revenue Authority, GRA, has slapped more taxes on ride-hailing drivers. Ghanaians who drive with transport network companies such as Bolt, Uber, Yango and the rest are now required to pay Vehicle Income Tax (VIT).

According to the directive by the GRA, transport network companies operating in the country are required “to update their digital platforms to require evidence of payment of Vehicle Income Tax (VIT) for both existing and new vehicles”.

The directive is scheduled to take effect on January 1, 2024, giving drivers and companies just about a week to comply with the new tax directive. Transport network companies and drivers are expected to comply with the GRA under Section 22 of Regulation 2016, LI 2244.

Read the GRA statement below.

PAYMENT OF VEHICLE INCOME TAX (VIT) BY RIDE-HAILING VEHICLE OWNERS

The Ghana Revenue Authority (GRA) wishes to bring to the attention of the general public, especially ride-hailing vehicle owners (Uber, Yango, Bolt etc) that, pursuant to Section 22 of Regulations 2016, LI 2244, any commercial vehicle owner that earns income from the operation of a commercial vehicle shall pay income tax on quarterly basis.

Also, Sections 1, 33 and 35 of the Revenue Administration Act, 2016 (Act 915) as amended, gives the Commissioner General the authority to give written directives, require any taxpayer to provide information or connect their digital system to the Commissioner General’s monitoring platform for the purposes of establishing the correct taxes payable to the State.

GRA therefore entreats all ride-hailing companies that operate in Ghana to update their digital platforms to require evidence of payment of Vehicle Income Tax (VIT) for both existing and new vehicles.

Ride-hailing companies are entreated to follow the underlisted guidelines:

• Entities are to demand a softcopy of the VIT sticker.

• Entities are to validate the authenticity of stickers with the GRA.

• Entities are to submit the list of all vehicles on their platform quarterly to GRA.

All ride-hailing companies are to kindly note that these requirements will take full effect on Monday, January 1, 2024.