The government of Sindh has given hint that it might reduce the rate of tax on Uber, Careem, as well as on the drivers in the province keeping in consideration that such firms give employment opportunities in the country.
Saeed Ghani, the Sindh Minister for local government said that there are chances that the rates of sales tax be revised on the services given by the cab operators and drivers in the final budget documents, which are yet to be approved by the provincial assembly.
He said this while answering the question that whether the increased tax rate would affect the employment opportunities in the province.
Ghani added that the government of Sindh was not charging 13percent sales tax on the cab operators and drivers.
The suggested Sindh Finance Bill 2019, but, indicates the rate of tax at 13percent on the cab operating drivers and firms.
Careem in a statement said that they appreciate the efforts of the Sindh government of reducing the tax from 13percent to 5percent and this would go long way towards bringing the digital ecosystem and job openings in the province.
But, Careem added that they would like to ask the Sindh government to consider zero tax policy instead of a 5percent tax on captains since it would have a substantial effect on the income of the cab drivers.