News

Uber Egypt Will Start Paying Value-Added Tax to Appease White Taxi Drivers

mm
Uber Egypt Will Start Paying Value-Added Tax to Appease White Taxi Drivers

An Egyptian taxi driver. Photo credit: AP Photo/Amr Nabil

In a step to reconcile the tension between the ride-hailing app Uber and white taxi drivers in Egypt, the Minister of Finance Mohamed Ma’it revealed on 18 February that Uber will start paying value-added tax (VAT) worth 14 percent to fulfill the Law No. 67/2016

According to the Egyptian Tax Authority, this law will be reinforced on other ride-booking companies in Egypt like Careem and others.

In an interview with MENA, the head of the Egyptian Tax Authority, Abdel Azeem Hussein said “Reaching an agreement and determining the tax treatment that will be applied to the company Uber and other companies operating in the same area will enhance confidence and cooperation between the authority and the tax community.”

This move is in accordance with the law Egypt introduced last summer to modulate Uber and Careem after local taxi drivers sued the ride-hailing companies for not paying taxes, because their drivers use private cars rather than cars that were registered as taxis, exempting them from taxes.

Uber released a statement last week alerting their users that their fare prices have increased to account for the inflation rate and VAT. A few weeks ago, Uber experienced technical difficulties, which prevented customers and drivers from accessing the application.

“They [the government] are blocking the app especially for drivers. A lot of drivers are coming in to download VPN which is the only way they can download the app,” a source close to Uber revealed to Egyptian Streets,”…this is because the government wants their customer data [ and its data server].”

Egypt is to the only country that is giving Uber a hard time. Taxi drivers in Denmark and Hungry are also feuding with the ride-hailing app leading to several “regulatory and legal setbacks” Reuters reported.

In 2017, the California-based company revealed that Egypt holds the biggest market it has around region employing 157,000 drivers and servicing over four million users.

Egypt's Sisi Makes 'First Step' in Recognizing Armenian Genocide: ANCE
Explosion Behind Al-Azhar Mosque in Cairo

Subscribe to our newsletter


News

More in News

Obligatory Anti-Divorce Courses to Begin in Egyptian Universities

Egyptian StreetsJuly 18, 2019

Plastic Bags to Be Banned in Egypt’s Marsa Alam

Egyptian StreetsJuly 16, 2019

Egyptian Authorities Free Trans Woman and LGBT+ Activist After 4 Months in Prison

Egyptian StreetsJuly 16, 2019

Egypt’s National Council for Women Visit Women’s Prisons to Ensure Quality of Care

Egyptian StreetsJuly 15, 2019

Cairo to Begin Planting Gardens on Rooftops

Egyptian StreetsJuly 15, 2019

Egypt Launched ‘Decent Life’ Initiative to Assist People Living in Underprivileged Villages

Egyptian StreetsJuly 14, 2019

Surveillance Cameras Installed After Animal Abuse at Cairo’s Birqash Camel Market

Egyptian StreetsJuly 11, 2019

Pro-Mubarak Facebook Page Admin Arrested for ‘Spreading Fake News’

Egyptian StreetsJuly 11, 2019
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2017 Egyptian Streets. All Rights Reserved.