Today the Federal government introduced their new budget, and within it, an amendment to Canada’s Excise Tax will redefine ride-sharing companies to taxi companies, thusly introducing the requirement of collecting tax in the form of GST or HST on every ride, reports Reuters.
Image via The Canadian Press (Sean Kilpatrick)
As it stands, Uber drivers utilize the ‘small supplier provision’ which exempts the first $30,000 in sales from GST or HST, but that will soon come to an end, as of July 1.
“It’s important to have a tax system that’s fair and less complex,” Finance Minister Bill Morneau told reporters. “With respect to Uber, what we’ve done is say there’s a level playing field. If you’re in an Uber or if you’re in a taxi, you pay GST (goods and services tax). That’s consistent with what Canadians expect, and we think it’s the right approach.”
Uber spokesman Matt Kallman said the following statement to Reuters: “We are reviewing the budget and its implications and will have more to say in the coming days.”
The amendment means the federal government will see $3 million additional revenue for the 2017 budget year, while estimated to grow to $5 million in the following years.
What do you think of paying GST/HST on your Uber rides, as of July 1st?
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Uber is a service. It’s only fair that the GST applies to it.
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Still a lot cheaper than a Taxi
I’m totally fine with this as well.
I used Lyft (a Uber competitor) in Las Vegas last month and it was half the price of a taxi, I didn’t get spammed my loud ads running on the onboard TV, car wasn’t a clunker and the invoice included government fees. I also could see the driver approaching from within the app and where we were on the itinerary as well. Added bonus: no need to handle money as payment was done within the app (including tip) and no extra charge for using a credit card either.
Uber drivers already make very little. It would be nice if the tax was paid out of the billions in wealth Uber has accumulated rather than a tax the driver must pay.