- For instance, bolt drivers making first Sh24,000 will have to remit 10 per cent of it to the taxman every month.
- The next Sh8,333 will invite a 25 per cent cut while the next Sh467,667 will be subject to a 30 per cent cut.
Image: COURTESY
Filing nil income tax returns by ride hailing taxi drivers could soon be a thing of the past as KRA enforces its eTIMS model.
Bolt, a major player in the sector says the provision requires drivers to diligently remit monthly income tax for rides they make over and above the VAT they remit.
For instance, Bolt drivers making the first Sh24,000 will have to surrender 10 per cent of it to the taxman monthly.
The next Sh8,333 will invite a 25 per cent tax cut while the next Sh467,667 will be subjected to a 30 per cent cut.
Drivers under the platform earning the next Sh300,000 and further Sh80,000 will remit 32.5 and 35 per cent, respectively.
This is the sensitisation message Bolt on Tuesday put across to its drivers during a driver engagement forum.
Caught by the new move, drivers expressed their disappointment, with a majority saying they are used to only filing nil returns at the end of every financial year.
Some were worried that this could be a way of subjecting them to KRA for scrutiny.
Bolt Kenya country manager Linda Ndung'u, however allayed their concerns saying the taxes have been in place but unlike before where they were non-compliant they will now have to be fully compliant.
"We are neither introducing them to new taxes nor intending to share their revenue information with KRA, we are only doing our mandate, which is to sensitise, rather than leaving them in the dark and get caught off guard to jeopardise their work,” Ndungu said.
She said Bolt will continue remitting VAT on the drivers behalf, but under the new system drivers risked sanctions unless they were compliant.
The forum also discussed safety, driver welfare and pricing.
National Digital Transport Federation officials at the meeting expressed concern over delayed approval of registration forms, longer refunding timelines and inefficiencies in the new features meant to enhance safety.
Some complained over the new SoS feature meant to be used in life-threatening situations where the passenger, driver or another road user is in immediate danger during a trip.
Hitting the in-app SoS button is supposed to send an instant message to a Bolt safety specialist who will then contact the passenger or driver and call police or other emergency services.
Bolt admitted to be facing challenges with the feature but promised to resolve the matter.
Ndungu said concerns raised by operators on revised pricing model to enhance drivers’ profit margins are still under deliberations by the Transport ministry.