Egypt to collect VAT from Uber
“This agreement comes as a result of the fruitful cooperation between the Tax Authority and Finance Ministry to settle any tax or customs conflict to push forward national economy,” the minister noted.
Ma’it clarified in a statement that this step was agreed upon during a meeting between head of the Tax Authority and country director of Uber, where they agreed to collect the VAT from Uber Egypt but in a soft way.
Head of the Tax Authority Abdel Azim Hussein said the agreement with Uber and the other companies operating in the same domain aims at enhancing confidence between the authority and the tax community.
He said the authority will focus within the coming period on settling all tax conflicts and collecting delayed taxes.
Last week, Uber raised its trips fares in an effort to offset inflation, an increase in its drivers’ fees, and the upcoming implementation of the 14 percent value-added tax (VAT) on its operations.
“Uber remains committed to providing flexible economic opportunities in the Egyptian market, while facilitating affordable, efficient, and safe transportation used by millions of riders to move around their cities,” Head of Central Operations in Uber MENA Ahmed Khalil said.
In 2018, Ride-hailing companies faced a lawsuit after 42 taxi drivers filed a case against UAE-based Careem and U.S.-based Uber; in addition, the Egyptian government accused the two companies of violating Egyptian traffic laws, specifically a law that bans the use of private-owned vehicles for commercial purposes. The taxis also claimed that the two firms were registered a call center and an internet company, respectively, suggesting that they are not legally regulated as ride-hailing services.
As a result, the House of Representatives approved a draft regulating the ride-hailing apps, like Uber and Careem, including several steps to legalize the electronic transport services. The new bill consists of four articles regulating the work of the two major companies in Egypt. Three other articles have been delayed for further discussion between MPs and the concerned ministers.
CAIRO - 6 May 2018: The House of Representatives approved Sunday a draft of regulating the ride-hailing apps, like Uber and Careem, including several step to legalize the electronic transport services. The new bill consists of four articles regulate the work of the two major companies in Egypt, delaying three other articles for further discussions between MPs and the concerned ministers.