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VIT: Ride-hailing drivers threaten strike

The Ghana Online Drivers Union (GODU) has issued an ultimatum, threatening a nationwide strike if the Ghana Revenue Authority (GRA) does not engage in dialogue regarding the recent imposition of the Vehicle Income Tax (VIT) for ride-hailing drivers.

Expressing opposition to the tax, GODU members, in a statement, said they are incensed by the GRA’s unilateral decision to implement the new tax starting January 1, 2024, without prior consultation with stakeholders, especially the drivers directly affected.

GODU highlights the absence of clear legislative regulations in the ride-hailing sector, leaving ambiguity about whether drivers should indeed be classified as commercial vehicle owners subject to the VIT.

In the statement, the union urged the GRA to defer the VIT implementation and enter into discussions with the union to address their grievances. 

The union underscored the importance of a collaborative approach to formulate a just and sustainable tax system for the ride-hailing sector.

However, should the GRA remain unresponsive, GODU warned of dire consequences.

The union said it is prepared to initiate a nationwide strike, effectively grinding ride-hailing services to a halt across the country. 

Alternatively, the union said it may consider implementing an operational cost and logical charge, potentially passing the additional tax burden onto passengers. 

 Classfmonline.com

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