Punjab govt to impose new tax on Uber & Careem in upcoming budget. It seems that budget of next fiscal year 2018-19 would be hitting high on public of the Punjab. However, the ride-hailing service didn’t feel safe from this attack among others. As, the upcoming Punjab budget is going to impose tax on these services too.
Soon the budget for the 2018-19 Fiscal Year will be announced by the Punjab government. In this budget, Uber, and all other ride-hailing services, are expected to be taxed at 5% in a new-fangled tax named “Ride-hailing services tax”.
The service-oriented sector is booming as compare to product-oriented companies. So, the government has decided a number of other taxes which are also going to be imposing, generally on service-based businesses.
According to the government representatives, this budget will be exempted from any major taxes on the general public. Well, we have to wait for the moment to know how much authentic is the statement or is it a just a ploy before the upcoming elections.
Punjab Budget tax plan for 2018-19
Here is the list of the taxes government will be bringing in the upcoming budget;
- Ride-hailing services tax,
- Rent-a-car services tax,
- Advertisement services tax,
- Broadcasting services, (In this category, the ad and broadcasting services consist of ads in magazine, newspapers, and journals etc).
- Courier services,
- Insurance services provider
- Proprietors of vehicles providing carriage services for rent collection debt collection, and cash collection etc.
Must Read: Ride for Safety with uberMOTO
The government is also contemplating restoring the full tax on standalone marriage halls and caterers. The tax on these is currently being charged at 5% under a tax scheme.
List of Tax Exemptions
On the other hand, Punjab government has announced that services provided by the following sectors will not be carried into the tax net;
- Health experts in the non-public sector
- Clinics
- Medical centers
- Maternity homes
- Legal experts
It is important to mention here that the budget was conferred in a resource mobilization committee and is predictable to be announced on 2nd May, 2018.
