Côte d’Ivoire Mulls Tax On Ride-hailing Services
During the recent presentation of the 2022 tax proposals, Côte d’Ivoire’s Director General of Taxes, Abou Sié Ouattara, announced the possible imposition of a tax on ride-hailing services operated via electronic platforms.
According to Ouattara, the country’s tax administrator has built up a taxation system for online sales platforms and digital services, which is waiting to come into full effect soon.
“There are other things in the laboratory that will not even make it to the fiscal year 2023,” said Mr. Abou Sié Ouattara, adding that there is “transport (controlled via apps) that we don’t manage and people assume we’re sleeping, but we’re not asleep.”
He promised that the Directorate General of Taxes “won’t even wait until 2023” to tax carpooling services.
The tax administration seeks to capture funds through electronic transactions as electronic commerce rises in significance.
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The Association of Metered Taxi Drivers (ACTC) held a work strike from November 2 to 6, 2021 in the West African country, to protest “the illegal practice of using personal vehicles” on the Yango and Uber apps.
Inter-municipal taxis, in particular, have complained about having to pay tax and insurance fees that personal vehicles using the Yango and Uber apps are able to avoid.
“It is intolerable that those who engage in the same activity are not subject to the same obligations,” the group said.
It urged these companies to “respect” the requirements for transporting metered taxis or cease competing unfairly.
Following the strike, the Ivorian Council of Ministers passed a decree regulating specific public transportation activities such as those “connecting users with drivers or carriers,” “carpooling,” “transport service of social utilities,” and “vehicles of transport with driver (VTC).”
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A computerized reservation network generally supports the Transport Vehicle with Driver (VTC)in Cote d’Ivoire. Several private automobiles operate in Abidjan using the network’s applications.
Côte d’Ivoire tax ride-hailing Côte d’Ivoire tax ride-hailing
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer