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"Uber trip fares will increase slightly for all ride options, including uberX, UberSELECT, UberBLACK, UberXL, UberONE and UberVIP in the rides app," Uber said.
"While transportation is exempt from the 5 per cent VAT, the tax does apply to the marketplace services provided by Uber through the app, which is equivalent to 1.7 per cent of the total trip fare," the statement added.
Simply put, this means if a ride earlier cost Dh100, it will now cost Dh100 + 1.7 per cent, or Dh101.7.
"Your ride with Careem will be taxed only on the portion of the fare that is attributable to our marketplace service. This will translate into an average fare increase of 1 per cent," a statement from Careem said.
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