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The new policy devised by government of Punjab might result in hike in fare rates of Uber, Careem and other ride-hailing vehicles. The new policy requires all riding service providers to register their vehicles commercially thus paying heftier motor tax which might result in increase in rates in Punjab.
Though the commercial registration is temporary and the owner will hold the right to cancel commercial registration and usage at any time however taxes will be paid. The government of Punjab declared Uber, Careem and other riding services ‘illegal’ as the companies were providing commercial services to customers without registering for vehicles and thus not paying taxes.
The government of Sindh is also taking legal actions against ride-services.