Tax expert welcomes Vehicle Income Tax charge on owners of ride-hailing vehicles
Senior Programme Officer with International Budget Partnership (IBP), Dr Alex Ampaabeng, has welcomed the decision by the Ghana Revenue Authority (GRA) to implement the Vehicle Income Tax charge on owners of ride-hailing vehicles such as Bolt, Uber, Yango, etc.
The Vehicle Income Tax charge according to the GRA will commence from January 1, 2024.
The regulatory initiative, which the GRA notes is in accordance with Section 22 of Regulations 2016, LI 2244, mandates that any commercial vehicle owner deriving income from operations must adhere to a quarterly income tax payment schedule.
Ride-hailing giants such as Uber, Yango, and Bolt have been notified to swiftly adapt their digital platforms to accommodate these new tax obligations.
Key directives outlined by the GRA include the requisition of a softcopy of the VIT sticker from ride-hailing companies, the mandatory validation of sticker authenticity through the GRA, and the quarterly submission of a comprehensive vehicle roster to the GRA for assessment.
Commencing on January 1, 2024, the GRA underscores its commitment to strict enforcement of these directives, signaling a transformative shift in tax compliance within the ride-hailing sector.
Speaking to norvanreports on the Vehicle Income Tax, Dr Alex Ampaabeng averred the tax is long over-due and should have been implemented a long time ago.
“I think the Vehicle Income Tax should have happened a long time ago, digitized taxation is very important and Ghana is way behind. And by digital taxation we are looking at not only the digital marketplace but all associated digital businesses.
“We have moved away from the brick and mortar and it’s time that government adopts policies that incorporate or capture key areas where businesses flourish in the digital space,” he remarked.
He made the assertion on the sidelines of the National Stakeholders Forum on Tax Equity in Ghana organised by Revenue Mobilisation Africa (RMA) and International Budget Partnership on the theme ‘Promoting tax equity in Ghana – the role of key stakeholders’ on Thursday, December 21, 2023.
Ride-hailing vehicle owners have been urged by the GRA to proactively register their vehicles at any GRA office, facilitating the streamlined payment of the VIT through the designated shortcode *222#.
The implementation of the VIT for ride-hailing services signifies a strategic effort to bolster revenue streams while ensuring equitable taxation within an evolving digital economy.
The financial landscape for ride-hailing in Ghana is poised for change, and industry players are urged to expedite preparations for seamless compliance with this newly introduced tax policy.
