BENGALURU: Amid concerns on its effects on riders and auto drivers, Uber India has asked the Central Government to reconsider its decision to levy Goods and Service Tax (GST) on app-based auto rides. The app-based cab and rickshaw service asked that the decision be reconsidered, citing difficulties for both riders and drivers. A statement released by Uber said, “This tax will lead to a rise in platform fares and a corresponding drop in demand. Riders and drivers will both lose out in this scenario.”
“Lakhs of auto drivers across India rely on Uber and other applications to earn a living. Riders, especially women and the elderly, like booking an auto via an app because of the safety and convenience that
comes with it. But they also value affordability,” an Uber spokesperson had stated.
The company further stated that the shift towards street-hailed autos means that the revenue generated on taxing app-based autos would be “marginal, at best.”The decision to tax app-based auto rides had come
in only a few days after the Karnataka Transport Department announced a hike in fares for auto drivers.
The revoking of Goods and Services Tax exemption on app-based auto services will come into force from January 1, 2022.