Government to apply 5% tax on Uber and Careem in upcoming Budget


Punjab Government will soon announce new provincial budget of 2018-2019. Government has planned  to impose additional tax on Uber and Careem along with other ride hailing services.

Budget will be revealed on May 2nd and it is anticipated that Govt will impose 5% tax. A meeting of resource mobilization committee was held and many other senior government officials attend the meeting. The main purpose is to discuss upcoming provincial budget of 2018-2019 and implementation of tax on other “services based business.”

It was planned by the committee that no major tax would be implied on general public.

Punjab Government budget plan:

Following are the things on which tax will impose:

  • Broadcasting services, it will include Ads in magazine, newspaper, journal, article etc.
  • Ride hailing services
  • Rent a car service
  • Insurance services
  • Courier service
  • Advertising ad service
  • Owners of vehicle who provide carriage for rent, debt and cash collection etc.

Administration was also thinking of withdrawing reduced tax scheme on marriage halls, Catering and restoring full tax upon them.

Things that will exempted from tax:

  • Health experts (in non public center)
  • Legal advisers such as lawyers
  • Maternity home
  • Clinics and Medical center

Resource Mobilization committee have said that government is currently concentrating on streamline taxation measure and wont introduce any new tax before general elections later this year. They have also done this before by banning uber and careem services, and have raised taxes because of their low rates.

This is their strategy to rise inflation by applying taxes on them for a short period. Then after general elections winning party reduce them back to normal.

via The News

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