Uber to pay VAT in Egypt officials

Uber has agreed to pay VAT on its services in Egypt, Egyptian officials said on Monday, a move that may help resolve a longsimmering feud with traditional taxi drivers.

The agreement would also apply to other ride-hailing firms, the head of the Egyptian Tax Authority, Abdel Azeem Hussein, said.

State news agency MENA quoted Hussein as saying the agreement would enhance confidence between the authority and the tax community.

Uber Egypt was not immediately available for comment.

Egypt introduced a law in May 2018 regulating ride-hailing apps Uber and Careem, after Egyptian taxi drivers filed a lawsuit arguing that the two companies were illegally using private cars as taxis and were registered as a call centre and an internet company, respectively.

An Egyptian court suspended Uber and Careem’s services in March 2018 after the taxi drivers’ suit but another court stayed the suspension ruling in April, allowing the companies to operate while the case was appealed to a higher court. A verdict is expected on Saturday.

Careem could not be reached for comment.