PRA tightens noose around Uber, Careem
PRA has warned both companies of hefty fines.
LAHORE (Dunya News)- Punjab Revenue Authority (PRA) has tightened the noose around the ride-hailing companies Uber and Careem in bid to bring them under tax net and summoned reply from both till Dec-19 .
PRA has also warned both companies against slapping hefty fines under clasue-48 of PSTA’s serial number 5.
Despite earning revenue in millions, both Uber and Careem are using delaying tactics and causing hefty loss to provincial exchequer by evading tax.
As per details, PRA had issued multiple notices to aforementioned companies under Section-57(2) of Services Act-2012. PRA had directed Uber to submit details of audit accounts for financial years 2015-16 and 2016-17, bank accounts’ statements, details of drivers working with the companies and details of fare amassed from customers whereas similar notices had also been issued to Careem.
Read also: Sindh govt summons meeting to bring Uber, Careem under tax net
Uber—in its written reply to PRA’s notices—took the stance that company had initiated operations in Pakistan on 26th of July-2016 under Taxi Services Companies Ordinance 1984 thus implying completion of first financial year on 30th of June-2017 and audit for the same is underway. The company has sought more time from PRA to submit detailed reply in this regard.
Read also: Punjab CM orders immediate resumption of Uber, Careem services
On the other hand, Careem—in its letter to PRA- apprised that they have moved court on tax-related matters whereas company was not incorporation in financial year 2015-16.
Sources privy to PRA, on condition of anonymity, told our correspondent that both companies are collecting starting, moving, waiting and peak factor-like charges from customers, thus there exists no harm in implementing 16pc sales tax on these services.
Published in Roznama Dunya, 15th December, 2017
