Government Imposes 6% Tax on Ride-Sharing Services
Summary
The Nepalese government has imposed a 6% tax on ride-sharing services, which includes a 5% VAT and 1% transaction TDS, increasing the total charges for rides. Ride-sharing companies like Pathao, Indrive, and Yango have informed users that this tax will be added to the fare.
Key Points
- The government has implemented a 6% tax on every ride in ride-sharing services starting Friday.
- This tax comprises 5% value-added tax and 1% transaction TDS collected on rides.
- Ride-sharing companies like Pathao, Indrive, and Yango charge commissions ranging from 3% to 20%.
- Combined taxes and service commissions can total up to 26%, excluding other expenses such as fuel and maintenance.
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