The Ghana Online Drivers Union (GODU) of the Trades Union Congress (TUC) has appealed to the Ghana Revenue Authority (GRA) to hold on to its implementation date of January 1,2024 for the Vehicle Income Tax (VIT) for further consultations.
In a statement dated December 27 and signed by its National Chairman, Francis Kweku Teng, GODU said the postponment will ensure “proper collaborations are deepened with the Union.”
GODU said it disagrees with the decision by the Ghana Revenue Authority (GRA) to re-introduce the payment of the VIT, because in the long run, it will be borne by the drivers and not passengers.
The Union said while acknowledging that as responsible citizens, its members must help to build the nation through paying taxes, “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. 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.”
The Ghana Revenue Authority announced on December 21 that it introduced the VIT as part of measures to expand the tax net.
In a notice issued by the Authority, it said the levy is in accordance with Section 22 of Regulations 2016, LI 2244 which indicates that “any commercial vehicle owner that earns income from the operation of a commercial vehicle shall pay income tax quarterly”.
Owners of vehicles used for Uber, Bolt, Yango and others to pay new tax from 1st January
The Authority, therefore, urged ride-hailing companies operating in Ghana – Uber, Yango and Bolt – to update their digital platforms to incorporate the new tax requirements.
However, GODU stated that, “We do not know how much the cost of the VIT is. We have challenges with the short code *222# to verify our vehicles. We do not know whether the update required by the GRA from the Ride-hailing companies will affect our work.”
Hence, the call for postponement of the effective date of implementation.