Ethiopia Raises Taxi Fares to Improve Driver Income

Ethiopia raised the taxi fares by 10 birr each month, rising from 100 birr to 130 birr. A 10% Tax on Turnover (TOT) will also apply.

Starting September 27, the new base taxi fares will be 130 birr in Ethiopia. This change considers what customers can afford and the needs of drivers.

The travel duration fee will rise from 2.50 birr to 3 birr per minute.

Taxi service providers will pay VAT and TOT based on their earnings. As most ride drivers earn less than 2 million birr. So, the drivers will start charging TOT from October 1.

These fare adjustments aim to improve the financial stability of drivers while balancing customer affordability. Drivers hope that the increased rates will help cover rising operational costs. Customers may need to adjust their budgets but can expect better service as drivers receive fair compensation for their work.

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