The Senate Committee on Labour and Social welfare intend to have the formulation of taxation and regulation policies for digital cabs in Kenya.
Senators opine that Kenya Revenue Authority may be missing out on taxes from ride-hailing apps.
According to Johnstone Sakaja, committee chairman, the lack of clear regulation and tax guidelines is leading to potential revenue loss for the state.
Additinally, Mr Sakaja believes that the digital cabs are operating at the expense of drivers. This is because they earn less than minimum wage from the business.
Therefore, the committee is out to protect the interests of drivers. It is therefore advocating for an inclusive and collaborative approach in formulating the tax and regulatory policies.
In this light, the Committee has given the National Transport and Safety Authority (NTSA) and digital cab stakeholders a fortnight to meet and formulate policy guidelines.
NTSA should ensure that the new regulations favour the interests of the drivers.
Welcoming the new directive, drivers say that the regulations will offer them a chance to participate in developing policies. This is in the hope of improving their welfare.
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