OLA, UBER rides to get costlier from Jan 1, 2022
As of January 1, 2022, Ola and Uber auto rides would be more expensive due to the government's imposition of GST.
From January 1, 2022, the Union government has announced that it will collect a 5% GST on vehicle rides booked online, abolishing an existing exemption.
Ola, Uber auto rides to get costlier from Jan 1, 2022 as govt imposes GST https://t.co/XXmJfkPA7s
— The News Minute (@thenewsminute) December 10, 2021
From January 1, 2022, auto-rickshaw rides booked through app providers like Ola and Uber will be more expensive as the government has decided to levy a 5% GST on all rides purchased online.
An Uber spokesman told The Times of India that while they understand the necessity for the government to collect revenue, they have urged the government to reconsider this tax, which will damage vehicle drivers’ wages in the government’s digitization strategy.
From January 1, 2022, the Union government has announced that it will collect a 5% GST on vehicle rides booked online, removing an existing exemption. Tax-free auto rides will continue to be available on the streets.
“We ask the government to reinstate the GST exemption for online auto products in the ride-sharing business so that riders, drivers, and cities may continue to benefit from this sector’s growth“, he continued.
Raghu N, a spokesman of Peace Auto, an association of auto-rickshaw drivers, has petitioned the Union government to remove the tax, claiming that profits have fallen due to COVID-19 and that it is sad that the government now wants a 5% cut from wages.
According to Aravind Sanka, co-founder of Rapido, the impact of the new policy on the whole ride-hailing sector would be unfavourable for both drivers and riders.
“This policy might lower the rate of consumers opting for auto rides, further making commuting less feasible and hassle-free“, he added.