Dubai – Mubasher: The transportation in the UAE is not subject to the value-added tax (VAT); however private transportation services, such as Uber and Careem are subject to VAT.
Both taxi-technology companies are planning to increase their trip costs due to the inflation followed the implementation of the VAT.
"To reflect these recent changes, Uber trip fares will increase slightly for all ride options, including uberX, UberSELECT, UberBLACK, UberXL, UberONE and UberVIP in the rides app," Uber said in a statement, according to the National newspaper.
Uber further added that the scheduled increase would reach 1.7% of the total trip cost, while Careem is planning to bring up the price of its service by 1%, the National reported.
"Even though transportation is exempt from the VAT, Careem’s electronic marketplace service is not, therefore your ride with Careem will be taxed only on the portion of the fare that is attributable to our marketplace service," Careem’s UAE general manager Clemence Dutertre, commented.
