Source: Ebenezer Mensah/ BNN Breaking
The Ghana Revenue Authority (GRA) has unveiled a new taxation directive scheduled to take effect from January 1, 2024, marking a significant milestone in Ghana’s tax regulation.
The new policy, known as the Value Income Tax (VIT), targets drivers operating on ride-hailing platforms including Uber, Yango, and Bolt. The introduction of the VIT aims to integrate the digital economy into the national tax framework and increase government revenue by capturing the earnings from the burgeoning gig economy in the country.
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This new tax policy requires ride-hailing drivers to pay income tax quarterly, which will inevitably increase the cost of using these services for customers in Ghana. The GRA has called upon ride-hailing companies to update their digital platforms to incorporate these new tax requirements. Additionally, vehicle owners are expected to register their vehicles at any GRA office and make their VIT payments using a designated shortcode.
The VIT is not the first tax innovation by the GRA. The Authority has recently introduced a 10% withholding tax on sports betting winnings, which has already accrued GH¢15 million within its first two months. The GRA has set an ambitious target of GH¢60 million by the end of the current football season, aiming to raise about GH¢400 million annually.
Ride-Hailing: A Key Player in the Digital Economy
Ride-hailing services have gained immense popularity in Ghana, offering convenient transportation options for residents and playing a key role in the digitalization of the country’s economy. The new VIT forms part of a broader effort to ensure that digital platforms and their participants pay their fair share of taxes, contributing to the economic growth of the nation.
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Source: Ebenezer Mensah/ BNN Breaking
