A quiet revolution is set to disrupt the ride-hailing industry in Accra’s bustling streets, as Ghana’s tax authorities have unveiled a
new tax policy known as the Value Income Tax (VIT).
This ground-breaking initiative, which goes into effect on January 1, 2024, is set to reshape the financial
landscape for vehicle owners associated with popular ride-hailing services such as Uber, Yango, and Bolt. Using Section 22 of Regulations 2016, LI 2244, the Ghana Revenue Authority (GRA) has taken the wheel on this transformative journey. This section requires any commercial vehicle owner who derives income from the operation of their vehicle to pay income tax quarterly.
The GRA’s action aims to ensure that the nation’s burgeoning ride-hailing sector pays its fair share.
Ride-hailing companies have been urged to update their digital platforms as soon as possible
in order to comply with these new tax regulations.
Obtaining a softcopy of the VIT sticker, a symbol of compliance, and validating its authenticity with the GRA are key guidelines. Companies must also submit a detailed quarterly list of all vehicles operating on their platforms.
The GRA’s emphasis on the January 1, 2024, implementation date emphasizes the gravity of this tax reform. Ride-hailing behemoths are now navigating uncharted territory as they race against the clock
to integrate these changes seamlessly into their operations. The Ghanaian public is watching closely as vehicle owners grapple with the impact of this tax reform, wondering how this move will affect the affordability and accessibility of ride-hailing services in their daily lives.
The full statement from the GRA is available below.