Govt may put tax on Uber, GrabCar service providers

Johari Abdul Ghani

KUALA LUMPUR: The Finance Ministry is looking at ways to tax the Uber and GrabCar ride-hailing service providers, but has no plans to tax the drivers, says Second Finance Minister Johari Abdul Ghani.

He said the Uber and GrabCar application platforms raked in millions of ringgit in profits from their operations in Malaysia.

“We will not impose tax on the drivers but will see how to levy tax on the platform (Uber and GrabCar),” he said, pointing out that the drivers also have to pay 25% (of the fare) to service providers.

Speaking to reporters after launching a community programme in his Titiwangsa constituency, Johari said service providers may be required to register a local company “…so we can see how much they make and from here how much tax they should pay.”

This was to ensure an equitable system for drivers as well as those who provided the service.

He said that as Malaysia practised an open economy, the ministry could not stop the digital economy from coming into the taxi market.

“But we must focus on how to take care of the welfare of the existing taxi drivers. The government is looking at the incentives that could help the drivers including increasing their income and in terms of financing their cars,” he added.