Uber Customers in Canada Will Start Paying Federal Sales Tax on July 1

If you’re planning to take an Uber home after a long night of Canada Day celebrations, don’t be surprised if your tab is higher than usual. However, this time it won’t just be because of the company’s surge pricing.

As of July 1, federal sales tax (13% HST in Ontario and 5% GST in Alberta) will be added on top of regular Uber fares. The tax, announced in the Liberal government’s federal budget in March, seeks to bring ride-sharing business under the same tax rules as conventional taxis.

Uber Canada slammed the measure as a “tax on innovation,” saying that rather than imposing new taxes on Uber drivers, the federal government should have leveled the playing field by extending small business tax breaks to taxi drivers.

[via Ottawa Citizen]