Ride-hailing drivers to embark on nationwide strike over VIT implementation

Story: Business Desk 

The Ghana Online Drivers Union (GODU)  has  threatened to embark on  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 argued  that the decision was made without any prior consultation with stakeholders, particularly the drivers who will be directly impacted.

Additionally, they pointed 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 warned  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.

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