GODU kicks against Vehicle Income Tax

The Ghana Online Drivers Union (GODU) of T.U.C is urging the Ghana Revenue Authority (GRA) and ride-hailing companies to delay the implementation date of the Vehicle Income Tax (VIT). This request comes after the GRA’s recent decision to reintroduce the payment of VIT starting from January 1, 2024. In a statement signed by Francis Kweku Tenge, the National Chairman of GODU, the union expressed opposition to the directive, claiming that the burden of the VIT costs would ultimately fall on drivers.

They also voiced dissatisfaction with the lack of consultation with stakeholders and the absence of legislative measures governing the ride-hailing sector as a commercial enterprise, making it inappropriate to impose taxes at present.

In addition, the union raised concerns about the undisclosed cost of the VIT, difficulties associated with the *222# short code for vehicle verification, and uncertainties concerning how the required updates from ride-hailing companies would impact driver operations.

Portions of the statement indicated, “We are appealing to the GRA to postpone the implementation date of January 1, 2024 until there is meaningful collaboration with the union.” If their request is ignored, the union has threatened to conduct a nationwide strike, negotiate prices with riders, and switch to alternative local apps as alternative courses of action.