Kenya Revenue Authority’s recent decision to spare the tax hailing firm Uber from paying Value Added Tax on rides has prompted outrage and anger among the company’s drivers.
It has also angered regular cab companies operating in Kenya as they have to pay VAT on their services rendered.
KRA has left out Uber, on claim that it is only offering an exchange platform between drivers and clients. Many have questioned this, given that they pay incentives to their so called contractors, issue Uber receipts and provide other services and oversight.
Other benefiting from this unexpected ruling, which may well be challenged in court, are Little Cabs, Mondo Ride, and Taxify.
Uber has been rolling out services in Kenya and the Eastern African region but has faced stiff competition in Kenya while at the same time reporting losses in some parts of the world.