Punjab govt. to make Careem & Uber drivers pay commercial taxes

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Careem and Uber have revolutionized the era of a taxi in Pakistan. These ride-hailing vehicles are not only providing the low fare cost but have also made the ride safe.  However, the new policy for these ride-hailing vehicles can be alarming.  The Govt. of Punjab has drafted a policy for the Careem, Uber and other ride-hailing vehicles.

As reported in the media this new policy aims at getting these ride-hailing vehicles, i.e., Uber and Careem to be commercially registered. Consequently, they will have to pay the high commercial motor tax which will compel them to increase their fares.

RELATED: Taxi and Rickshaw Drivers Protest Against Uber and Careem in Lahore

This commercial registration shall be done under the Motor Vehicle Ordinance 1965, which will allow these registered vehicles to be used for commercial purpose. This registration will, however, be temporary and it can be canceled by the owners whenever they want.

Provincial Government has approved this policy. This new policy is formulated by the transport and excise departments and Punjab Information and Technology Board and the transport and excise departments formulated the new policy.

It should be highlighted that due to the commercial use these vehicles were suspended in Karachi, Lahore, and Islamabad at the start of this year in January.

These vehicles of Careem and Uber were declared “illegal” by the Provincial Transport Authority of Punjab Government because these two companies were offering the transport facility without getting their vehicles registered.

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The Sindh Govt. has also taken legal actions against these ride-services by asking the PTA to block their apps with the claim that the use of private cars as a taxi without a proper mandatory legal permit as “illegal.”

But, the High Court of Sindh has ordered the provincial authorities as well as private hail-ride cab services to finalize a proper method to regulate the commercial use of their private vehicles by them.

The judges were later informed that both companies Careem and Uber and the provincial transport had reached an agreement. According to this agreement, the vehicles will have to get registered under the Motor Vehicles Ordinance, 1965 if they want to use it for commercial purpose.

Careem and Uber provided a lot of ease to people with their adequately managed, safe and low fare cab service. The new policy may lead to an increase in their fare, but still, it’s too early to conclude that how much this policy will affect the Careem and Uber cab-service keeping in view their ease and safety for the passenger.

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