VAYA Mobility, the taxi and shuttle service provider has said the delays in the disbursement of money to its service providers were a result of aligning the payments to the new withholding tax threshold of 30 percent.
This follows an internal memo where one employee reportedly un-procedurally told contractors that they were having cash flow problems and affecting their December commission payments.
In a statement, the company said the late payments were due to the new withholding tax statutory of 30 percent, which came into effect on January 1, 2022. The company said:
Following the December holiday season, there was a delay in our payments cycle, which coincided with the introduction of the 30 percent statutory withholding tax.
This subsequently resulted in a delay in the January payments for some of our partners. The company – which is on course to clear any outstanding payments by the end of this week – regrets the delay, and has since communicated this to the affected partners.
It added that through its partner management channels, VAYA is committed to continuing to create economically empowering opportunities by working closely with all partners to deliver great mobility and logistics solutions in 2022 and beyond.
VAYA is one of the first on-demand app-based cab services to operate on a large scale in Zimbabwe. Vaya is owned by Cassava Smartech (now EcoCash Holdings) under Cassava on Demand Services, a subsidiary of Econet.
The Service was launched in 2018 and it has been expanding since.
More: The Herald