Careem And Uber Are Hiking Their Prices Despite Transportation Being Exempt From VAT

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The roll-out of value added tax (VAT) around the UAE has created some confusion and some businesses have been fined for failure to correctly implement the taxation system. 

A list of exempt services for VAT was released last year, which showed the exclusion of transportation (among other services). 

However, transport apps Careem and Uber have announced a price hike in regards to VAT. 

The two services emailed customers on Thursday, informing them that a price hike would be implemented on services to combat the VAT being implemented on surrounding parts of the business. 

The two services are not raising the fees by 5%

But Careem has informed customers it will be increasing prices by 1% and Uber by 1.7%. 

Careem put a statement on its website 

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Uber sent an email out to its customers 

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Read: VAT UPDATE: Value Added Tax Will Have Little Impact On Residents

Written By

Caitlyn Davey

Caitlyn is an Aussie journalist looking to change the world. In her spare time she loves playing sport, travelling and basically doing anything that means she doesn't have to sit still.

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