Tax Disruption for Ride Sharing Apps?

The Punjab government is trying to find new ways to regulate ride hailing apps like Uber and Careem and generate tax revenue from them. One of the proposed methods requires all such vehicles to register as commercial vehicles during the time they’re online.

One of the biggest hurdles towards commercialization is that none of the vehicles are owned by either of these apps, rather they simply provide a platform where customers can connect with private car owners.

Getting these owners to commercialize their vehicle is going to a major problem since the resale value of commercial vehicles drops considerably. Chairman PITB Dr. Umar Saif has proposed a fully automated tax collection model in which commercial taxes will only be applied on to the vehicles while the drivers are using the app.

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