In the upcoming budget of the Punjab government for the year 2018-19, the ride-hailing services—Uber and Careem would be imposed with new taxes under the tag of “Ride-hailing services tax”. The budget is soon to be announced by the government of Punjab. The expected tax to be applied would be around 5 percent.
A meeting of the resource mobilization committee was conducted to discuss the upcoming provincial budget of the year. The meeting was attended by the officials of the government. The Punjab government is planning to release the budget on the 2nd of May 2018. Many other taxes are also to be included especially in the service based businesses. No major taxes would be applied to the general public by the provincial government.
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The following items would have amended tax in the upcoming budget of 2018-19:
- Ride-hailing services tax
- Insurance services providers
- Broadcasting services including the advertisements in magazines, journals and newspapers, etc
- Rent-a-car services tax
- courier services
- Proprietors of vehicles who provide carriage services for the collection of rent along with debt collection and cash collection, etc
- Advertisement services tax
The government is also pondering on up-lifting the decreased tax scheme of 5 percent for the separate marriage halls and caterers and for the restoration of full tax.
The government of Punjab plans to exempt the following service providers from any kind of tax:
- Medical centres as well as clinics
- Maternity homes for the elderly
- Legal experts like lawyers
Punjab government has taken this initiative before too and has planned to impose the same tax owing to the low rates of Careem and Uber rides. The government has also tried to ban the two services before a lot of times. Let’s see would the government be successful in the application of taxes on Uber and Careem or not.