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Wednesday, 30 May 2018

House Transport Committee proposes variable work hour-based tax system for ride-hailing apps

House eyes complicated tax formula for Uber, Careem? The House of Representatives’ Transportation Committee is proposing that the state scrap the idea of a standard base tax for ride-hailing company drivers, such as Uber and Careem, and implement instead a variable tax based on the number of days and hours worked, Rep. Abdallah Zein tells Al Mal. Consider this smoke, not fire: The jumbled story speaks of taxing the companies, but describes a tax system that could only apply to drivers. We’re flagging this as “watch this space” and not as the definitive word on how the House feels the ride-sharing companies or its drivers should be taxed. The Tax Authority had said last week that it was looking into how best to impose the value-added tax (VAT) on ride-hailing companies once they official register their businesses under the Ride-hailing Apps Act.

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