The Commissioner General of the Ghana Revenue Authority (GRA), Rev. Dr. Ammishaddai Owusu-Amoah, has justified the decision to impose the Vehicle Income Tax (VIT) on owners of ride-hailing vehicles.

He stated that this measure is intended to broaden the tax base, ensuring a more inclusive taxation system.

“It’s important that we deepen and widen the tax net, and if there are businesses and industries not captured, everything must be done to bring them on board”, he said.

Dr. Owusu-Amoah highlighted that the GRA has been adopting new strategies to incorporate businesses operating in the e-commerce sector into the tax framework.

These efforts aim to ensure that businesses in the evolving digital landscape contribute to tax revenue. The Commissioner General shared these insights during an interview on PM EXPRESS BUSINESS EDITION, hosted by George Wiafe, scheduled to air on Thursday, December 28, 2023, at 9 pm on the Joy News Channel.

The Ghana Revenue Authority (GRA) has introduced the Vehicle Income Tax (VIT) for owners of ride-hailing vehicles, effective January 1, 2024.

According to a statement from GRA, the levy is in line with Section 22 of Regulations 2016, LI 2244, which stipulates that "any commercial vehicle owner that earns income from the operation of a commercial vehicle shall pay income tax quarterly."

Ride-hailing companies such as Uber, Yango, and Bolt have been urged to update their digital platforms to integrate the new tax requirements. The move is part of GRA's efforts to expand the tax net and include businesses in the e-commerce sector.

Dr. Owusu-Amoah stated that the GRA has to be innovative to collect the right taxes for development.

“Most businesses and enterprises have been moving their services into the E-Commence space and we need to find innovative ways to capture their services for tax purposes”.

“I think it’s not fair that, normal commercial vehicle operators are paying their Vehicle Income Tax on their operations, however owners of Ride-hailing Vehicles are not captured”.