Uber and Grab, which have offices in Ho Chi Minh City and other cities and provinces, will have to pay taxes to the Hanoi People’s Committee. Hanoi is trying to even the field between Uber and Grab and traditional taxi firms This was one of the contents of the document that the Hanoi People’s Committee submitted to the Government Office on the management of Uber and Grab under the pilot programme called “Application of information technology in supporting the management and connection of commercial passenger transportation by contract,” according to newswire Zing. According to the document, this proposal is to ensure transparency and equality in tax obligations among passenger transport services providers. Besides, Hanoi proposed the Ministry of Transport (MoT) to add a legal framework and improve authorities’ management capacity over electronic transactions and electronic trading in order to control the operations of transport units under this pilot programme. Hanoi also proposed the government to build regulations to identify ride-hailing application providers as transport firms and impose similar management measures as for traditional taxi firms. Accordingly, Uber and Grab will have to have a transport trading licence for automobiles, register their fleet as well as declare fares as traditional taxi firms. Furthermore, Hanoi also asked ride-hailing application providers to register their e-commerce platform licence. In addition, ride-hailing application providers will have to publicise the number of vehicles in their fleets, the routes, the working hours of drivers, as well as the operation areas so that the authorities can control and… [Read full story]
Management of Uber, Grab to be tightened HCMC – The Ministry of Transport will advise the Government to tighten management of ride-hailing firms Uber and Grab while ensuring they can still operate, VnExpress quoted Deputy Minister of Transport Le Dinh Tho as saying. At a review meeting on two years of a pilot scheme for ride-hailing apps in Hanoi on Tuesday, Tho said the presence of Uber and Grab has provided commuters with more options and convenience and local authorities with more management experience. However, there remains a lack of specific conditions for them to operate, thus leading to unfair…... [read more]
Taxi drivers in Vietnam are trying to win back airport passengers from the hands of foreign ride-hailing firms Uber and Grab by lowering fares and sending spam messages to let customers know about the latest promotions. Airport customers used to be a major source of income for many taxi drivers, but that story has changed dramatically since U.S.-based Uber and Malaysia-based Grab made landfall in Vietnam in 2014. Hoa, a driver who drives a traditional taxi in Ho Chi Minh City, said he used to earn up to VND250,000 ($11) per day from carrying passengers to Tan Son Nhat International…... [read more]
Conventional taxi companies are subject to a 10% VAT and 20% corporate income tax on revenue while companies like US-based Uber are able to bag as much as 20% of the amount passengers pay for a ride while only paying a three percent VAT, Ta Long Hy said at a conference on February 24. That translates into a tax of 0.6% of Uber’s total revenue, Hy told the event on fair competition in the taxi industry. The remaining 80% of total revenue lands in the pockets of its partnered drivers, each of whom is also subject to a VAT of…... [read more]
The growing popularity of app-based transport services like Uber and Grab has eroded profits of traditional cabs. Ride-hailing services like Uber and Grab are paying lower taxes and face less stringent rules, which have created unfair competition and led to falling revenues of traditional taxi firms in Vietnam, industry experts said. Uber and Grab bear responsibility for a drop of at least 10 percent in last year’s revenues of the taxi industry in Ho Chi Minh City, the city’s association of taxi drivers estimated. “While [traditional] taxis are tied to [strict regulations], Uber and Grab are loosely regulated,” Tuoi Tre…... [read more]
The growing popularity of app-based transport services like Uber and Grab has eroded profits of traditional cabs. Ride-hailing services like Uber and Grab are paying lower taxes and face less stringent rules, which have created unfair competition and led to falling revenues of traditional taxi firms in Vietnam, industry experts said. Uber and Grab bear responsibility for a drop of at least 10 percent in last year’s revenues of the taxi industry in Ho Chi Minh City, the city’s association of taxi drivers estimated. “While [traditional] taxis are tied to [strict regulations], Uber and Grab are loosely regulated,” Tuoi Tre…... [read more]
