The Ghana Online Drivers Union (GODU) has threatened a statewide strike if the Ghana Revenue Authority does not engage them on the recently implemented Vehicle Income Tax (VIT) for ride-hailing drivers.
The GRA’s announcement of the new tax, which will take effect on January 1, 2024, has infuriated GODU members. They claim that the decision was taken without consulting stakeholders, notably the drivers who will be immediately impacted.
They further note that the ride-hailing industry presently lacks sufficient legal rules, making it unclear whether drivers can be regarded as commercial vehicle owners liable to the VIT.
In a statement, GODU encouraged the GRA to postpone the VIT’s implementation and begin conversations with the union to resolve their concerns.
They underlined the need of working together to create a fair and sustainable tax framework for the ride-hailing industry.
However, GODU cautions of potential implications if the GRA stays unresponsive. They are preparing to go on strike across the country, effectively shutting down ride-hailing services.
Alternatively, they might impose an operational and logical fee, presumably passing on the higher tax burden to passengers.