After a news regarding a memo of Punjab government to ban ride-hailing services Careem and Uber, the Directorate of Excise, Taxation and Narcotics Control issued a notification on Wednesday seeking details of vehicles linked to their companies.

Indeed It is very easy to understand why Punjab Government is feeling the pain because A Taxi is backed by Chief Minister of Punjab, meanwhile Private companies like Uber and Careem has opened the door for thousands of unemployed literate people to earn decent income quality rides and cheapest fares.

The notifications states that a number of private vehicles registered with the Motor Registering Authority (MRA) were being used for commercial purposes under the platform of Careem and Uber.

Earlier on Tuesday, hours after a memo declared three online transportation companies – Careem, Uber and A One – as “illegal”, Chairman of the Punjab IT board Umar Saif said the approach is being “reviewed”.

Talking to the media, he said that the government did not issue any notification as it was an internal memo between the offices that has been prematurely made public.

He said that the approach was being reviewed within the government, adding, “We are coming up with a formal policy.”

He said both Uber and Careem currently did not pay tax in Pakistan, adding that the Punjab government was handling the issue with an “innovative business model”.

“There are two ways that a government can approach such companies when they launch: 1) treat them as a taxi service or 2) treat them as a service that government’s can regulate.”

“We don’t want to treat them as a taxi service,” Saif added. “But they need to be regulated and taxed. They must register as a formal business under a new taxation regime.”

A committee will be formed in which all departments concerned will be made part of it for deliberations, he said.

When asked to share details on the new plan, Saif said it will be modelled around taxation regimes for such companies in Malaysia, Egypt and Indonesia where they are treated as “network service providers”.

On Monday, the government declared three online transportation companies – Careem, Uber and A One – as illegal

 

More news you might be interested in

Careem to obtain route permit and continue operati... The Sindh High Court on Wednesday pursued Careem's case, the popular ride-hailing service, and the Sindh government might reach a crucial agreement on...
Employment Opportunities Created by Uber and Caree... The unemployment ratio in Pakistan is too high due to which majority of graduates are jobless and eventually they  ends up on drugs. I would like to t...
Uber to Launch in Islamabad & Rawalpindi next... Uber is finally launching its services in the twin cities of Islamabad and Rawalpindi, we have checked this officially. According to confirmations ...
Punjab Government launches free Motorbike Ambulanc... Punjab Government has launched free Motorbike Ambulance Service in the province. Chief Minister Muhammad Shahbaz Sharif formally inaugurate the ser...
URIDE Pakistan debuts in Karachi with severe confu... A new smartphone app based cab service debuts in Karachi known as URIDE – It promises to follows the similar pattern as Uber and Careem in Pakistan. ...

LEAVE A REPLY

Please enter your comment!
Please enter your name here