Uber raises fares to offset anticipated implementation of VAT

Ride-hailing app Uber has decided to raise its fares to offset inflation, an increase in its drivers’ fees, and the upcoming implementation of the 14% value-added tax (VAT) on its operations, according to an emailed statement (pdf). The Ride-Hailing Apps Act, which passed the House of Representatives in its controversial final form in May of last year, did not impose VAT on ride-hailing companies. A source from the committee drafting the executive regulations to the law had said earlier this year that the regulations would introduce a new levy of EGP 2-5 per trip, so it is likely that the regulations would also introduce the VAT.