The recently introduced Vehicle Income Tax (VIT) for ride-hailing drivers has prompted the Ghana Online Drivers Union (GODU) to threaten a nationwide strike.
The Ghana Revenue Authority (GRA)’s announcement of the new tax, effective January 1, 2024, has sparked indignation among GODU members whose outrage stems from the claim that the decision was made without any prior discussion with stakeholders, especially the ride-hailing drivers who will be directly affected.
Ghana VIT Execution: GODU’s Take
The Ghana Online Drivers Union (GODU) has therefore threatened to go on strike unless the Ghana Revenue Authority (GRA) does something about the issue.
The GODU also mentioned that, right now, there are no proper legislative regulations in the ride-hailing sector, which is why it is unclear whether drivers can be classified as commercial vehicle owners liable to the Vehicle Income Tax (VIT).
There were also pleas that the GRA should put off the execution of the tax and begin discussions with the union to deal with their apprehensions.
The GODU and GRA must sit down to develop a just and sustainable tax system for the ride-hailing sector.
However, the GODU warns that if the GRA refuses to respond to their concerns, they are ready to launch a national strike, effectively stopping ride-hailing services throughout the nation.
Another solution that the union is considering is to pass the extra tax burden onto passengers.