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Ride-hailing drivers in Addis Abeba are facing tax assessments several times larger than they anticipated, arriving alongside rising fuel costs, mounting traffic penalties and scarce parking. With no association to represent them and no clear route to contest the bills, many are quietly reverting to manual street pickups, taking fares off the platforms and out of the tax net.

This development has significant implications for ride-hailing drivers in Addis Abeba, who are already struggling with rising costs and decreasing earnings. The tax assessments, which appear to be arbitrary and excessive, have left many drivers feeling frustrated and uncertain about their future. As a result, some are opting out of the ride-hailing platforms altogether, taking fares off the system and avoiding the associated taxes.

The Ethiopian tax regime is governed by the Income Tax Proclamation No. 979/2016, which requires taxpayers to pay income tax on their earnings. However, the proclamation also provides for certain exemptions and deductions that may be applicable in this case. The Addis Abeba City Administration's Revenue Bureau is responsible for collecting taxes from ride-hailing drivers, but it appears that there are no clear guidelines or procedures in place for contesting tax assessments.

Ride-hailing drivers should monitor the situation closely and seek advice from a qualified tax professional to ensure they understand their obligations and rights under the law. They may also want to consider forming an association to represent their interests and advocate for fairer treatment by the authorities.