After the news of ban on Uber and Careem broke out yesterday and went so viral on social media; finally we have heard a stance from Punjab Government side too. The Chairman of the Punjab IT board Umar Saif disclosed that the issue of Careem & Uber ban is still under review. Careem & Uber Issue will be Resolved Within 15 Days: Punjab Govt
The issue of Careem and Uber will be resolved within 15 days according to the directions of the chief minister of Punjab. These services were never banned but the companies will have to fulfill legal obligations. The only reason behind this move of Punjab government is public safety & to bring this activity in tax net.
Careem & Uber Issue will be Resolved Within 15 Days: Punjab Govt
With an interview with Dawn News, saif revealed that they are trying to devise a regulatory framework for both ride hailing services within the government. He told that the letter was an internal memo and has prematurely been made public
He told that both the ride hailing companies, Uber and Careem are currently not paying tax in Pakistan. To create ease for people of Pakistan, Punjab government is tackling this issue with innovative business model.
“This is being reviewed within the government. We are coming up with a formal policy. This letter was an internal memo and has prematurely been made public.”
He told the press that they neither want to ban both services nor want to treat them as taxi. But they need to be regulated and should by tax payer. They should register themselves as proper formal business under a taxation regime which is recently framed.
There are two basic ways that a government can approach such companies when they launch: Punjab Govt
After such companies are launched, government can treat them in two basic ways. They can either threat them as a taxi service or such services can be regulated by government. He further said that to run a private taxi, the vehicle must be made commercial and owners of the vehicles must obtain fitness certificate.
Saif further explained that they are devising new plan regarding these companies. He said that new plan will be modeled around taxation system that such companies are already getting in Malaysia, Egypt and Indonesia. There these car hailing services are treated as network service providers.
Advantages of Careem & Uber Operational in Pakistan
Saif also said that these multinational car hailing services are brought to Pakistan with great efforts and negotiations are in process right from the beginning. He said that as Pakistan donot have any proper transportation structure, such companies are warmly welcomed.
Such services don’t just provide ease to people but also create several employment opportunities. He revealed that he was very happy with the launch of Uber Rickshaw service in Pakistan as now rickshaw drivers will have great opportunity to be a part of formal economy.
Uber and Careem are the world’s most popular ride-hailing services , claiming on average 107 countries around the globe. In other countries they claim to surge prices three times the minimum fare during peak hours and four times between midnight and 5 am.