(Reuters) – Uber Canada on Thursday urged the Canadian government to retain a tax advantage open to ride-services companies, on a daily basis as soon as the country's Liberal administration proposed taking off the measure.
The new national budget unveiled on Wednesday said the federal government planned to amend Canada's Excise Tax Act to redefine ride-sharing firms as taxi companies.
This would force the us govenment to build up the items and services tax (GST) on every ride provided, just as traditional taxi operators should do.
"Federal tax laws already offers small business owners an escape on collecting sales tax, but unfairly exclude taxi drivers," Ian Black, regional gm for Uber Canada said in a statement.
"The best way to support taxi drivers and level the field is to extend a similar exemption for many years," he explained.
The change could mean higher fares for Uber customers in Canada, and are the latest headache for your $70 billion company.