Both Careem and Uber have been asked by Punjab Revenue Authority to come under the tax bracket, asking them to respond by 19th of December, 2017. PRA claims both ride-hailing companies are earning millions in revenue but have delayed tax payments. Both companies face heavy fines if they ignore to respond to Punjab Revenue Authority under PSTA’s clause-48 of serial number 5.
RELATED: Punjab govt. to make Careem and Uber drivers pay commercial taxes
In January 2017, Provincial Transport Authority Punjab declared both Careem and Uber operating outside the provincial regulations, and was looking towards banning the companies. A notification issued by Provincial Transport Authority to Chief Traffic Officer of Lahore claimed that the both ride-hailing companies had been offering transport services “without registering the private cars with any regulatory body.”
And now Punjab Revenue Authority is also demanding answers and has presented the companies to either abide by provincial rules or face heavy fines. PRA has already issued multiple notices to both companies under Section-57(2) of Services Act-2012. Both companies responded to PRA with their respective stances but from the looks of it, PRA didn’t find the answers satisfactory.
If the companies do what PRA is saying, it might lead to increased fare for customers.
