Starting Tuesday, April 1, Bolt will introduce a 16 per cent Value Added Tax (VAT) for its drivers in compliance with the law. This is after cushioning the drivers for 15 months.
The decision now means Bolt drivers will be responsible for paying their own taxes. However, Bolt has assured us that it will continue to find avenues for drivers to make earnings.
After consultation with various government agencies, including the National Transport and Safety Authority (NTSA), and to comply with the law, Bolt has ended its transition and will introduce a 16 per cent VAT on Bolt's commission.
For the past 15 months, Bolt has covered the VAT on behalf of drivers to ensure a smooth transition. Its drivers have been exempted from the tax that other online ride-hailing companies began implementing in 2023.
Under the VAT (Electronic, Internet, and Digital Marketplace Supply) Regulations, 2023, ride-hailing platforms are classified as digital marketplaces. This means they are responsible for collecting and remitting VAT on the services they facilitate.
“Our focus remains on compliance, fairness, and sustainability,” said Dimmy Kanyankole, General Manager, Bolt Kenya and Tanzania.
Adding, “We are committed to supporting our drivers through this transition and will continue to engage them through awareness and education and offering them opportunities to ensure they maximise their earnings.”
Bolt, which has taken on the tax burden since its introduction in 2023, has reached a decision after careful consultations, keeping the potential impact on drivers in mind.
Importantly, this decision does not imply that Bolt passengers will be asked to pay additional fees. The company clarifies that the regulations established by the National Assembly do not permit drivers to impose extra charges on riders.
With the recent changes, drivers will now receive their payment after the platform deducts its commission and any applicable VAT.
In response to concerns raised by riders regarding additional fees when discounts are applied, Bolt clarified that no rider should incur any extra charges.
The company emphasised that drivers are always paid in full during promotions and discount periods.
