Taxation within the Transport Sector: A Ride-hailer and Sharing Economy Perspective
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This study explored the implications of taxes on ride-hailing services in a developing economy setting and its effect on the activities of drivers who patronize such services. Using thematic analysis, the study analyzed interview responses from key participants in the ride-hailing services such as the drivers, service operators, and vehicle owners based on the sharing economy perspective. The results indicate that (1) in a broader sense the contribution of the ride-hailing service is characterized with some features such as savings in money and time, ease of stress for both drivers and passengers, and also ease of movement; (2) taxes are needful to ensure sustainable governance but these taxes ought to be equitably charged to all actors within the economy and (3) the Vehicle Income Tax is a cause of financial distress to Uber drivers due to its increasing nature. More importantly, the tax has the potential of eroding profits which makes drivers worse off. This new but genre system of transportation is gaining roots and far advancing within the Ghanaian landscape. Thus, policymakers and industry players must focus on its role within the economy and the benefits therefrom. Equally, there must be more policy initiatives to prevent overburdening the final consumer of ride-hailing services with high taxes and prices. It also suggested that subsequent studies focus on the use of a different methodology within a different or the same setting.
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