Careem And Uber Are Hiking Their Prices Despite Transportation Being Exempt From VAT
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
Uber sent an email out to its customers
Read: VAT UPDATE: Value Added Tax Will Have Little Impact On Residents