The new national budget unveiled Wednesday by Canadian Prime Minister Justin Trudeau’s Liberal government took aim at ride-sharing providers such as Uber Technologies, looking to end a tax advantage they have over traditional taxi companies.
The budget statement said Trudeau’s government plans to amend Canada’s Excise Tax Act to redefine ride-sharing firms as taxi companies. That would force them to collect the goods and services tax on every ride provided, just as taxi operators are required to do.
Under current law, some drivers for ride-share operators make use of a so-called small-supplier provision that exempts the first C$30,000 of sales from the tax. The amendment would end the exemption.
“It’s important to have a tax system that’s fair and less complex,” Finance Minister Bill Morneau said when asked about the matter during a news conference on the budget. “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. That’s consistent with what Canadians expect, and we think it’s the right approach.”
Full Content: Bloomberg
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