Ride-hailing drivers threaten nationwide strike over VIT implementation

The Ghana Online Drivers Union (GODU) is threatening a nationwide strike if the Ghana Revenue Authority fails to engage them over the recent introduction of the Vehicle Income Tax (VIT) for ride-hailing drivers.

The GRA’s announcement of the new tax, effective January 1, 2024, has sparked outrage among GODU members. They argue that the decision was made without any prior consultation with stakeholders, particularly the drivers who will be directly impacted.

Additionally, they point out that the ride-hailing sector currently lacks proper legislative regulations, making it unclear whether drivers can be classified as commercial vehicle owners subject to the VIT.

In a statement, GODU strongly urged the GRA to postpone the implementation of the VIT and initiate discussions with the union to address their concerns.

They emphasized the need for a collaborative approach to develop a fair and sustainable tax system for the ride-hailing sector.

However, if the GRA remains unresponsive, GODU warns of potential consequences. They are prepared to launch a nationwide strike, effectively halting ride-hailing services across the country.

Alternatively, they might implement an operational cost and logical charge, presumably passing the additional tax burden onto passengers.

 

Read the full statement below

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