Fri. Mar 29th, 2024
Ola-Uber

Ola and Uber cab drivers have to pay more taxes for leasing due to the launch of the Goods and Services Tax (GST). As per officials from these companies, the tax will be increased from 14.5% to somewhere between 29-43%. This would result in cab drivers to pay additional ₹1 lakh per year, while simultaneously their EMIs would also shoot up. This will create tension for the drivers as they were already marred by falling incomes due to the companies cutting back on incentives.

Shalabh Seth, CEO of Ola Fleet Technologies said “At Ola Fleet Technologies, we run a leasing programme for tens of thousands of driver-partners who may not be able to afford to buy a car of their own. Presently, these driver-partners pay 14.5% VAT. In the proposed GST regime, they will have to bear GST rates of 29 to 43% on the cars already leased, as an outcome of double taxation on existing leases”.

This extra burden is because of a service charge of around 18% plus over 20% of vehicle sale tax on these leased cabs.

By Bharat