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Careem and Uber to get more expensive in Sindh

June 24, 2019
 
Careem and Uber to get more expensive in Sindh

The Sindh government has reduced the tax it is going to levy on online ride hailing services to 5%.

In its recently presented budget, the government had proposed a 13% tax on the service and 13% tax on drivers’ salaries. However, in a notification on Monday, the government announced that it had reduced this to 5%. This will be effective from July 1.

It denied that there would be a 26% increase in fares, as reported by The News. The service will be taxed 5% and the driver 5% separately but the consumers will only pay 5%, not 10%.

The tax was reduced after negotiations with ride hailing services like Uber and Careem. The government noted that other rent-a-car services were already paying 10% in tax, so this 5% tax will still give Uber and Careem a competitive edge.

Careem says it is trying to negotiate with the government to remove the 5% tax on its drivers’ earnings.

 
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