Letter To the Editor
Ride sharing services will get costlier
The ride sharing services as Uber, Pathao, Sohoz, FlitBD and SAM are operating in the major cities, particularly Dhaka and Chittagong. Over the last two to three years, they have become immensely popular. We commuters are getting benefitted by these services as we can beat the traffic easily and reach to our desired destinations.
However recently in the Budget of FY 2019-2020, the finance minister has proposed 7.5 per cent VAT on ridesharing and at the same time it also proposed 4 per cent withheld taxes on the vehicle owners. On an average about 40,000 rides are provided through different companies per day. Additional taxes on vehicles' owners and VAT on every ride will increase the cost of ride.
The country's each and every ridesharing company is running their business with huge subsidy and it is not the right time to impose VAT on it. These ride sharing services became popular because of the cost friendly nature and very much availability. But this recent imposed VAT will going to make it more unpopular and costlier.