Punjab Govt to Impose New Tax on Uber & Careem in Upcoming Budget

Punjab government will be announcing the provincial budget for the 2018-19 fiscal year soon. Uber, along with other ride-hailing services, are expected to be taxed at 5% in a new tax called “Ride-hailing services tax”.

A number of other taxes are also going to be added, mostly on service-based businesses. Overall, the government representatives say that this budget will be exempted from any major taxes on the general public.

Punjab Budget 2018-19

Here are the taxes government will be bringing in the upcoming budget;

• Ride-hailing services tax,
• Rent-a-car services tax,
• Advertisement services tax,
• Broadcasting services. The ad and broadcasting services include ads in magazine, newspapers, and journals etc.
• Courier services,
• Insurance services provider,
• Proprietors of vehicles providing carriage services for rent collection, debt collection, and cash collection etc.

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The government is also contemplating restoring the full tax on standalone marriage halls and caterers. The tax on these is currently being charged at 5% under a tax scheme.

Tax Exemptions

Punjab government has announced that services provided by the following will not be brought into the tax net;

• Health experts in the non-public sector.
• Clinics,
• Medical centres,
• Maternity homes
• Legal experts.

The budget was discussed in a resource mobilization committee and is expected to be announced on 2nd May.