PRA issued notices to Careem and Uber

Punjab Revenue Authority (PRA) has demanded the leading ride-hailing companies of Pakistan to come under the tax net and asked them to respond till December 19.

The warning has also been given by PRA to Uber & Careem against slapping heavy fines under the clause-48 of PSTA’s serial number 5.

Both the companies are earning millions in revenue but they are still using tactics to delay payment of taxes and thus causing heavy losses to the provincial exchequer.

PRA has issued notices to Uber and Careem multiple times under Section-57(2) of Services Act-2012. The ride-hailing companies have been asked to submit the complete details of their audit accounts for the year 2015-16 and 2016-17. It includes the bank details, driver information, customer fares etc.

Uber replied to PRA’s notices and said that the company started operations in Pakistan on 26th July 2016 under Taxi Services Companies Ordinance 1984. It is hinted that the first financial year of Uber in Pakistan will complete on 30th June 2017. So more time is needed to submit the details to PRA.

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Careem has also said that the company had not started operations in the financial year 2015-16 and on tax matters Careem explained that they have moved court.

PRA correspondent confirmed that both Uber and Careem are collecting peak factor like charges from customers so most probably 16pc sales tax will be put on these companies.

In less than two years these ride-hailing companies have made their mark in Pakistan. Life of Pakistani commuters has become easier with Uber & Careem services. It’s important for them to submit details of their audit accounts and pay the taxes so that Pakistani public keeps enjoying hassle-free rides.

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