Uber and Careem fail to pay taxes

The government is hellbent on regulating the Uber and Careem, as these mobile cab services are now asked to share the data of vehicles that are working under their banner. Although the PITB chairman Umer Saif ensured that there was not going to be any ban on the taxi services Uber and Careem, still both are under tough scrutiny by the authorities.

Directorate of Excise, Tax and Narcotics Control (Region C) has requested the Uber and Careem to share the data of vehicles that are providing pick and drop services to their customers.

In a letter of application, the respective authority stated, ” It has been learned that some vehicles registered as private with the Office of Motor Registring Authority, Lahore are rendering services on the commercial basis, under the umbrella of your organization. Therefore, your good office is requested to share data of such vehicles which are using the platform of a group.”

Data Sharing request for Uber and Careem

It seems that government’s wrath on online Cab services is going to victimize the owners of vehicles who are using their private vehicles for commercial purposes. Both the drivers as well as companies are earning quite a handsome amount as a driver can make almost 50,000 to 70,000 after paying for his expenses and 20% of his business.

Here lies a point for customers to worry about, as they no more would be able to enjoy the easy pick and drop service in an economical way, the burden of the tax would also fall on them.

The war between the Cab services and government authorities, is as old as the launch of these services,  from the notices of compulsory registration within PRA (Punjab Revenue Authority) and the filing of sales tax returns, both parties have kept in exchanging words with each other.

Further, there is also a need for some mechanism to identify the vehicles as cabs for security and safety purpose to avoid any possible mishap.

Whether the companies or the vehicle owners, whoever gets caught up in tax net the ultimate burden would lie on the passengers who might switch back to the previous modes of commutation.

In any case, users of these services are also going to suffer as they protested on social media against the ban on Careem and Uber and defended these tech-oriented transporters.


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