Bringing ride hailing services under heavy service tax net in Sindh is likely to increase fares by 26 percent, said a report in the media.
The Sindh government in its finance bill for budget 2019-20 has proposed 13 percent service tax each on the ride-hailing services and the service providing drivers, known as captains by some services.
Contrary to measures taken by Sindh, Khyber Pakhtunkhwa government has proposed only two percent tax on these services. “We highly appreciate the efforts of Taimur Jhagra, the Minister of Finance KP and his cabinet for understanding the business model of Online Marketplaces which have immense means to create jobs in Pakistan,” said a spokesperson of Careem.
“We welcome the introduction of the sub-category of ride-hailing and the measures taken to regulate it without hampering its growth potential. This will allow for the creation of thousands of new jobs and attract investment in the province,” she said.
Careem is further partnering with the government of Khyber Pakhtunkhwa to bring their Rescue 1122 Ambulance services onto the platform.
