The Ghana Online Drivers Union (GODU), affiliated with the Trades Union Congress (TUC), has expressed its disagreement with the Ghana Revenue Authority's (GRA) decision to reinstate the Vehicle Income Tax (VIT) starting from January 1, 2024.

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While acknowledging their responsibility as citizens to contribute to nation-building through tax payments, GODU raised concerns that the burden of the VIT would ultimately fall on the drivers rather than the passengers.The National Chairman of GODU, Francis Kweku Teng, conveyed this displeasure in a statement dated December 27.

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Mr Teng emphasized that the union was not pleased with the directive, citing a lack of consultation or collaboration with stakeholders. “We are not too happy about this directive because, there was no consultation or collaboration with us, as stakeholders, just like the way the GRA imposed a VAT of 21.9% on our commission from July, 2023.

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Likewise, the App companies (Uber, Bolt, and Yango) did not engage us before the implementation of the VAT on 1st July 2023. There is no legislative instrument that regulates the ride-hailing sector as a Commercial entity, and therefore it is illegitimate to tax our operations now,” GODU’s National Chairman wrote.Similar to the imposition of a 21.

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9% VAT on their commission in July 2023, the GRA had not engaged with GODU before implementing the VIT. Additionally, Teng pointed out the absence of a legislative instrument regulating the ride-hailing sector as a commercial entity, deeming the current taxation of their operations illegitimate.

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On December 21, the Ghana Revenue Authority announced the introduction of VIT as part of measures to broaden the tax net, citing Section 22 of Regulations 2016, LI 2244. The regulation stipulates that commercial vehicle owners generating income from their operations must pay income tax quarterly. The GRA urged ride-hailing companies such as Uber, Yango, and Bolt to update their digital platforms to incorporate the new tax requirements.

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GODU expressed uncertainties regarding the cost of VIT, challenges with the verification short code *222#, and potential impacts on their operations due to the required updates from ride-hailing companies. In light of these concerns, GODU appealed to the GRA to postpone the implementation date of January 1, 2024, until meaningful collaborations could be established with the union.

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