Punjab Slaps Uber and Careem Drivers with New Taxes

Careem and Uber have established their roots all over the country. Punjab has now decided to cash in. They have shaped new policies which will result in an increase in the prices of Careem, Uber and other taxi services.

The New Policy

The new policy was formed by the Punjab Information and technology Board along with the transport and excise departments. The policy states that all the owners of cars being used in the service will have to register the vehicle under the commercial field. The drivers will end up paying heavier taxes and will eventually force the companies to increase their prices.

The commercial registration can be enabled for as long as a person drives for the service. It can be canceled any time the owner wants. The policy has been approved by the provincial government.

The Ban on Careem and Uber in Sindh and Punjab

In the beginning of this year, Careem and Uber were barred in three major cities of the country, Karachi, Islamabad, and Lahore. Sindh government went as far as to take action against the services.

The government declared both ride-hailing services as illegal and demanded the apps to be blocked by the Pakistan Telecommunication Authority. The government was enraged over the fact that the cars of the service were not registered with any regulatory body.

The case went to the Sindh High Court and it mediated the argument between the provincial government and the ride-hailing services by asking the companies to decide on a mechanism which will regulate the operations of all the private cars.

An agreement was reached and the judges were notified that an agreement had been reached between the government and the ride hailing services and all the cars will be registered under Motor Vehicle Ordinance 1965 and given permits for commercial use.

Via Tribune

    • Bhai, sari dunia main in ko regulate kia gaya hai. Her baat main manfi tanqeed achi nahi.
      Middle East main rehnay walo say poch lain k kia koi apni private car Uber ya Careem main registered krwa skta hai?
      Or wesay bhi yeh companies arbo kama rahi hain sari dunia main governments in say tax leti hain tu hum q nahi.

      • Khuda ka wasta, Pakistani govt. ko UAE se compare na karo,
        Yahan ki Govt k loog to wahan jaa k Akaamay banwati hai,
        Wo loog awaam ko Facility detay hain, aur ye Awaam ka khoon chooste hain.
        Agar Tax lagana hai to facilitate bhi ossi tarhaan karain.

      • Jee governments lethi hain tax aur badlay main kuch dethi bhi hain . Koi security di hai government nay ? Koi road network jis par gari thabah na ho ? koi traffic system? koi quality check garion ki? Bas tax collection kay liay bethi huee hai government .

  • That was really needed and a good step. Vehicles of taxi drivers are registered as commercial vehicles then why not Uber and Careem drivers’ vehicles? Those vehicles are used for commercial activities and their drivers must accept this fact.

      • @AbdulWAHABAlam:disqus Why you comment so many dumb comments on all blogs?. All Service Providers are obliged by law to pay taxes around the world.
        Do you know companies like Mobilink, Telenore, Ufone etc are also service provices but in the cellular market.
        Similarly careem and Uber are service providers in the taxi/ride hailing. They must pay their due share.

        • Dear Govt. can regulate them but there is no need to put taxes on it as it will finally become a burden on the end user which are already miserable people of Pakistan.

        • At the End Customer Would Pay the All Taxes Amount :
          Aur Hum Bachpan Se tax dete a rahe he had hoti hai jaha tax kam ho to samjh main ata hai ye step hai
          PEHLY HE TAX Ka Itna Bojh Hai Ghareeb Par
          90% to Careem Uber Wale Khud Kisi Ki Car Le K Chalate hai Per Day Income Pe :

    • Bhai wasuli apse he honie hae. as the article states. taxes for driver will force the increase in fares by the companies and you will pay as customer.

  • the captains registered their cars just for fun or as part time may start exiting/unregistering from Uber and careem.

  • its not a slap, it a nessasity, following rules and laws is compulsory for evry one,

  • A decent nation always pays taxes! Doesn’t Uber and Careem earn? Why not should they pay taxes? All people earning Income must pay Income Tax! This country needs the support of people!

    Usual taxi drivers pay many much more and still we bash them that there vehicles are old and bla bla bla, don’t forget that we grown up using these old taxis! Uber and Careem drivers do part time jobs, they have other jobs as well, actual taxi drivers’ livelihood depends on driving taxi but we do not like that!

    C’mon, be mature and face it

    • They have dug their own grave Sir. Taxis from 80s/90s era and unsuitable for families and charging exorbitant amounts for an average distance trip.

      • Well Sir, negotiation may work, you are right in your stance but leaving them alone is not a good solution!

        Taxi drivers are poor guys feeding their families, if I have to pay 100 Rs. Extra to a guy earning by taxi, I would prefer that instead of giving money to a healthy beggar who does nothing!

        ALLAH reham farmaye

        • Yep, but how many people will think like this?

          Most of them will prefer comfort and AC over a regular taxi, so some initiatives should be done for those regular yellow cab drivers.

    • My forefathers have grown up in the ‘Ghora gaari wala era’ should we bring them back again?
      Taxi and rickshaw walas charge double and even triple when they hear ‘hospital, shopping centre, cinema house, airport etc’ and on late night too.
      Andhi loota hai unhoune.

      • The ghora garri and vehicle having 4 tires and an engine is a different thing

        An old taxi has an engine, 4 tires as does the cars of Uber or Careem, so not much of a difference as per your logic

        You won’t negotiate with the price of a product being offered in Centaurus Mall, you won’t argue with the companies charging you on monthly basis but damn it if a taxi driver, on whom, a family is fully dependent, asks you a fare that you don’t like!

        May ALLAH grant us the light so we may take care of the poor segment of the society to whom a bill of Rs. 50 is a biggish thing

        • I traveled in a black Suzuki FX around 10 months back in Rawalpindi. The pocket money for his 2 sons and 1 daughter was Rs. 50 per head, daily. And Rs. 100 on special days if they asked for it. Rs. 50 used to be a big thing in 2003 – 2005, when we could get a lassi for Rs. 25 and Milk Shake for Rs. 30, and an Anday wala Burger for Rs. 20. Today, Rs. 50 has no value.

    • when ur paid taxes are misused, Govt grapple u with colossal loss, When we are compelled over their stern actions. In short govt dis respectfulness is in veil.
      Our Govt system is rife with cheaters!!!!!
      Now be mature!!!!

  • Sharam kerni chahiye, kitnay nojawano ki rozi lagi hay uber careem se, hakumat nojawano k rozgar k liye kuch kerti nahi hay aur bahar se jo companies ati hay un pe taxes laga deti hain.. Bycott that act. Kuch pesay nojawan kama le un ko kamanay do awaam k liye bhi kuch soch lo, ghareeb admi bike chala ker sawaria de raha hay. Kisi k rozgaar pe laat na maaro aur na hee taxes lagao. Poori dunia mei ye services chel rahi hain sirf Pak mei he ye sub hota hay.. Kun :'(

  • A fixed tax? Even that Uber/Careem driver drives for a only a few weeks?

    As far as I know, Uber/Careem drivers are ‘self-employed’ and are not necessarily the employee of Uber or Careem and Uber drivers in other countries pay taxes according to their income which seems like a fair solution.

    • Every income is taxable according to the law. No if’s and but’s.
      Careem and Uber pay millions to lawyers to avoid taxes. They use the same terminologies like yours to avoid taxes.
      The fact is that they have to pay taxes.

      • Dude, Punjab govt is urging them to register as commercial vehicles. In other parts of the world where Uber is operating, there is no commercial tax apart from the tax which is deducted from the driver’s annual income (only some classes of uber has the prerequisite of applying for a commercial license). There should be no commercial license for this type of service apart from the tax which the driver/captain should pay DEPENDING on his income. And mind you, I’m not talking about Uber/Careem companies. I’m talking about drivers/captains who are self employed there. They shouldn’t have to pay heavier tax.

        No ifs or buts? We don’t live in caves.

        People are enjoying cheaper and comfortable rides. What governetment is doing to facilitate a common man in his daily commutes? Yeah taxing him that’s what.

    • What’s wrong with that? The traffic condition in cities may force us to go back to Bicycle era! So get ready

  • Lo bhai lagg gie chakay areny they paying taxes when they fill up fuel when they buy car ? And taxi walas are running 10 taxis on one permit who will check them ? And who will delist them from system once registered as commercial vehicle register ka chai pani alag or de register ka alag xd

  • Tax must not be fixed, but on ride to ride bases, and can be cut at the source.. This will accommodate people who are not the full timers. Lets say, govt can tell uber, careem and other ride hailing services that 5% of fair will go to government.. which is fair thing.. Any may be it will earn govt more than the fixed tax.. but will be fair for part-time drivers. Will also not be big impact on the riders.

    • This. Nobody is understanding anything just saying ‘yes it is good they should, they must pay taxes’. Instead of a tax according to their income, no slap them with a commercial license.

  • Good. UBER and CAREEM pay ZERO taxes. Also they are a duopoly and money is flowing outside Pakistan. Someone make an app and compete.

  • Well……If Uber and Careem are Taxed, that will naturally increase the FARE, which will be born by the customer.

    Uber & Careem Drivers are self employed, therefore they pay TAXES on their income when they file annual TAX return as tax Filer. Who will collect the TAX when the company doesn’t get direct commission from drivers in cash. They instead incentivize them with their own commission structure.If drivers are not paying any cash to company then who will collect the taxes.

    Question No 2. Is there any existing mechanism with which the Rikshaw and TAXI Drivers are being taxed… ?????

    I support TAXES… but it should be for all…. If it’s for Uber Careem, then it should also apply to Rikshaw Taxi Drivers… In fact these Riksha Taxi Drivers should be imposed a monthly penalty for over charging and pathetic vehicle conditions.

    • Rickshaw, Taxi, buses etc already register their vehicles as commercial vehicles. All commercial vehicles pay higher token fees for commercial reasons. Go and learn before commenting here.

  • Careem and Uber are providing services. Every service provider is obliged to pay taxes.

    Uber pays billions of dollars in taxes to Europe and America. So there is nothing wrong to tell these companies to pay taxes in Pakistan. It is totally fine and legal. That is what every province should do.

    Moreover Search Engine, social media services and Email providers pay billions in taxes in America and in Pakistan they pay nothing. Government should do more to let Google, gmail, yahoo, hotmail and facebook etc to pay their due taxes as well.

    • Do not mix conglomerates with an individual driver who is not even an employee of Uber/Careem per se.

      He ll pay his due taxes from his annual income but HE shouldn’t be forced to get a commercial license or pay heavier taxes.

      • Ok, show one guy earning from Uber or Careem who is willingly paying taxes?

        No one Sir, dandda is always required and it works!

        Tax chori ka koi moqa jany nahi dia jata! Lihaza, abhi sirf aik news pr itna react na karain, let the policy be published

        • Then this discussion will lead from common man to our powerful politicians who do the same and we ll get nowhere. Regulate the system so they are forced to pay instead of slapping them with a heftier commercial license.

  • It is good to put Tax on earning body and persons…..But all must accept that Uber and Careem are new entrants and drivers are getting engaged …it is too early to put them in Tax net…..let drivers and companies to penetrate market…..company and drivers must be given some Tax holiday period of 3-5 years so that they get aware of their earnings and market.. after that they can be charged with taxes….
    To my knowledge 50-60 % of drivers are owners which opt this service as part time job coz they are making bit of pennies extra in 2-3 hours daily bracket of their precious time which they have been left after jobs………….these part time drivers must be considered and accommodated while putting taxes

  • Yes regulate but what is the government providing in return? Any checks on service quality?No. Any tests for the drivers? No. Any security? No. All the government is doing is making it more expensive to travel as companies will be forced to raise rates to meet tax obligations.

  • jo bhi kr lo….govt ne albayrak chala k hi saans laina hai… riksha, busses 50, 50 year old bhi chal rahi hain jin k pass koi fitness certificate bhi nahin wo arsa se chal rahi aur ksi ko khiyall nahin aaya, yeh to phir new and latest models cars hain….uber ko aay abhi 3 year bhi nahin huay aur iss ko band krnay k pichay parray hain…..,

  • Did Govt bring Rickshaws in Tax Net in last few decades, ever thought of that? Not really because Govt don’t have any monitoring policy for them but yes can easily track these ride hailing apps.

  • i am not a political person, neither i support any party. Only thing that i know taxes are compulsory, and it is our responsibility to pay our taxes. This is a good article, Govt agar Uber and Careem ko regulate kar rahi hay to its good, but i wish in return Govt bhi awam ko wese felicitate kare jesy other countries jaha ye service chal rai hy waha awam ko kia jata.

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