Taxing the ride sharing apps

Mobile cabs ride sharing apps have taken over the conventional taxi service worldwide and its proving to be the most suitable ride hailing mechanism even in countries like Pakistan. With one single account of yours, you may call a cab anywhere in the world. This digital system has enabled the entrepreneurs with the big idea to munch the crunch without spending a dime. What’s positive about it is people at large have been benefited with the App and now it’s the most convenient and affordable mode of transport for lower and upper middle class both. Now that the system has become a basic necessity for all, and people are unable to get back to Rikshaws that cost even more than these and are not comfortable either. This is the time that government can utilize these Apps for widening of tax base throughout the country. It’s time for innovative means of bringing maximum number of people in the tax net.

Government must start imposing tax on ride sharing apps Uber and Careem users who are not tax-filers, tax should be bare minimum, so it may not disturb the traveling routine of customers. However, the purpose of this tax imposition is not to increase revenue but to make people avoid tax evasion. Customers who are filers shouldn’t be taxed for the service, thus in order to enjoy tax amnesty the users shall start getting registered for tax returns. The biggest problem in Pakistan is people are unable to file taxes on their own even if they wish to file returns because it’s a technical process that even tech savvy persons can’t handle. Largest chunk of the users belongs to universities and colleges and this is where we need to start schooling our current generation regarding importance of tax filing.