The 2017 Federal Budget dropped Wednesday afternoon and a few changes are coming down the pipeline that will affect everyone’s bank accounts.
One of those changes will see the feds start imposing GST/HST on ride-sharing services like Uber. It’s all in a bid to level the playing field for taxi companies who are already required to pay these taxes. But it will also result in higher fares for riders.
Fares will have to go up across the board to account for the change, which may put Uber’s prices on par with taxi cabs. So far the ride-sharing service has been able to offer cheaper rides, making them the more desirable option.
The change will result in modest revenues for the federal government, jus $3 million in 2017/18.
With millions of riders across the country, it isn’t clear whether an increase in fares will have any sort of effect on Uber’s customer base. The convenience, transparency and a few other factors also contribute to the company’s popularity over the traditional taxi.
