Taxes to be imposed on Uber and Careem by the government

Taxes to be imposed on Uber and Careem by the government
Taxes to be imposed on Uber and Careem by the government

So when it comes to breaking the monopoly of the various taxi services and rickshaw drivers in Pakistan, the main credit on that end goes to the very famous E-commerce companies known as Careem and Uber, who by profession deal in providing users with ride hailing services in the major cities of Pakistan. Together both companies brought in amazing travelling services at very decent. Moreover, the respective companies achieved more success by categorizing the source of travels in various classes thus making it easier on the consumer’s end. Those who wished to travel economically and did not care about the model of the car could simply travel on Uber Go mini and to make the economical class more premium they could simply travel by Uber Go or Careem Go. The Elite who prefer service of travel could use the Uber Go+ option and the premium users could also use the Uber X option which consists of luxury cars, all in all giving all the people, hailing from different backgrounds a simple and effective way of travel.

In addition to that, who can forget the impact these companies have had on the country, travelling has been made more safer, more economical and more efficient.  On top of that it has also educated the people on using such applications on there phones in order to get better value for there money and to get an amazing service on there fingertips. The impact of both ride hailing services has been great for the people of Pakistan as they have continually reaped the benefits provided by these companies. The taxi services and rickshaw services charged almost 3 times the price you can get on an app such as those of mention. To make things even sweeter, the company also launched a bike service for the many students in our country who at times can really feel the preassure of budgeting there transport expenses. Students can now simply get from place to place without having to pay huge amounts of prices and hence can save a lot of money, by doing so.

So all in all it is safe to say that E-commerce businesses such as these have had a very positive effect on the consumers of Pakistan. However, the new government has been busy taxing various industries and businesses in a bid to increase tax revenue. Instead of restructuring the tax system by making more people pay taxes, they have increased the burden of taxation on the 1-3 percent of population who are actual filers. Moreover, many industries have faced the axe, mobile phone selling and buying have been taxed and it is now important to have your phone verified, phones cannot be brought in from abroad without paying a necessary fee. Cars in the country have been heavily taxed and well the overall inflation rate has reached its peak.

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In that regard, in the new 2019-2020 budget it is believed that companies such as Uber and Careem will also be taxed. With the new budget the Careem& Uber riders will have to pay higher fares than the current amount they are paying for the services. The Sindh Government in the financial budget of 2019-20 have already announced the increase in the tax of 13% on the income of ride-hailing companies and their drivers. This tax will increase a burden on their already legal income and the constant rise in the prices of fuel will do no justice to the drivers and will ultimately discourage there from operating. It is worth noting here that while Uber and Careem proved to be very beneficial for consumers, it should also be noted that these companies also provided many unemployed with jobs and a decent way of earning a living. Such measures from the government will discourage these drivers from operating and well on the consumers end, both companies will have no option but to increase the fares they charge there customers.

In contrast, Uber and Careem are not the only companies which will face the axe. Other E-commerce oriented companies will also have to pay a specific tax to continue operations in Pakistan. All in all this will inevitably lead to a rise in prices by these platforms. Companies such as Uber, Careem, OLX and Daraz are all famous websites who have completely restructured the basis of purchase and sale of goods and services and it will be sad to see any of these companies stop operations here in our country. The constant rise in taxtion has already lead to many people losing there jobs, with many major companies cutting down the wage budget by relieving workers if there jobs to cope with the rise in taxation. Taxation is without a doubt very important for both the country and the government but without proper structure the burden of tax will only increase on filers and the non-filers will go unnoticed, doing no good to the country or the government.

The services provided by these businesses can not go unnoticed and should hence be cared for as they without a doubt help and make things better on the consumer’s end. The people of Pakistan are already facing enough problems, the government should therefore understand the needs of the people as well. Businesses are already afraid of investing in Pakistan now, at least make things easier for those who have established an outstanding foundation in the country.


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