Government Imposes 6% Tax on Ride-Sharing Services

Kathmandu. The government has started taking 6 rupees on a 100 rupee ride. From Friday, the government has started taking 6 rupees including 5 percent value-added tax and 1 percent transaction TDS on every ride.

With this government system, ride-sharing companies have issued a notice to their riders and captains stating that such an amount will be added as 'amount to be paid' and have issued a directive that the rider must send it.

Currently, ride-sharing companies are charging up to 20 percent commission for application services. Pathao charges up to 20 percent, Indrive charges 10 percent, and Yango charges 3 percent commission.

Along with government revenue, taxes and service charges have now reached up to 26 percent. This does not include fuel, maintenance, mobile data, voice, etc.