Story: Business Desk
The Driver and Vehicle Licensing Authority (DVLA) has directed all digital transport operators – Bolt, Uber, Yango and others – to halt the collection of the new Digital Transport Fee.
In a press release dated April 5, 2023 DVLA indicated that their decision comes after observing the mixed reaction and concerns of the general public toward the implementation of the fees.
The Authority stated that following the concerns of the public, it would consult with the Ministry of Transport and other stakeholders for the way forward.
The letter copied to all digital transport operators, reads “The Driver and Vehicle Licensing Authority (DVLA) has observed reactions and concerns towards implementation of the Digital Transport Guidelines, particularly with respect to fees charged by Digital Transport Operators and given various descriptions such as “Digital Transport Fee” “Booking Fee” among others.”
“All Digital Transport Operators are to immediately cease collecting such fees. The Authority will hold consultations with the Ministry of Transport and other stakeholders in the industry to ensure that any introductions are done with stakeholder input. We count on your cooperation.”
The directive comes after the government through the DVLA began the implementation of the Digital Transport Fee on all rides as tax on April 4.
Customers would be charged an amount of ¢1 as a digital transport fee on all rides.
Speaking in an interview, President of the Ride-hailing Association Francis Tenge said there would be an increase in prices of rides as customers would be charged ¢1 as Digital Transport Fee going forward.
The transport services sent notices to their customers and began charging the fees as it was introduced.
Some members of the public were unhappy about the tax charged on their fares.
Meanwhile, the digital transport services guidelines were earlier introduced pursuant to the Drivers and Vehicle Licensing Authority Act.
According to the government, these guidelines were designed to ensure that digital transport system operators operate in compliance with the law, maintain high safety standards, and provide quality service to passengers.