Punjab Approves 4% Sales Tax on Online Taxi Services

The Government of Punjab, following in the footsteps of the Sindh Government, has approved a proposal for 4% provincial sales tax on online taxi services.

The proposal was approved by the Punjab cabinet committee on legislative business here on Tuesday, which will see online taxi services such as Uber, Careem, Airlift and other being charged 4% sales tax.

The move will impact fares as these companies will likely pass on the tax onto the app users.

The committee met for the 22nd time with Raja Basharat, the Provincial Minister for Law, Parliamentary Affairs and Social Welfare heading it.

Recently, Airlift was in the news as the Sindh government banned the ride-sharing service but later denied it and added that they were going to bring in regulations for such services and later introduced their own version of the tax.

What do you think? Let us know in the comments below.

  • I dont like it uber,careem also help poor population as a mode for transportation and this will directly impact poor of country.

  • Wrong attempt, should give some relaxation/relief of peoples of Pakistan instead charge more on it. please review again. Thanks

  • These services are relatively cheap as compared to rickshaw thus affecting earnings of poor people. There minimum charges should be Rs. 500.

  • Careem/uber 25% commission drivers sai cut karti hai
    Example. If fare is Rs 1000 and after cutting 25% commission than Rs750 for driver in this Rs 750 if we cut the car fuels consumption of Rs 300 + Rs 100 for maintenance of vehicle than only Rs 350 income for driver and this is not enough for survival in society
    Lets calculate.
    Total . Fare Rs 1000
    Careem/Uber 25% commission Rs -250
    Fuels consumption Rs -300
    Vehicle maintenance Rs -100 (average)
    Accident policy is Rs zero
    Total income of driver Rs 350
    (Note-) there is no accident policy plane careem and uber .i am also driving with both services and i faced minors accidents during the careem/uber rides but when i contact them they refused to help .

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