KATHMANDU: Ride-sharing services are now set to become more expensive. The government, through the Economic Bill 2026, has imposed a total of 6 percent tax on ride-sharing services under two different headings.
The government has levied a 5 percent Value Added Tax (VAT) and a 1 percent advance income tax on ride-sharing services. Through this budget, the government has brought ride-sharing services into the tax net for the very first time.
Through the Economic Act, the government has added a new point after sub-section ‘a’ of Section 7 of the Value Added Tax Act, 2058/(2002), making a provision to levy VAT on ride-sharing.
Similarly, amending Section 95 of the Income Tax Act, the government has made a provision to levy a 1 percent advance income tax on ride-sharing.
With the addition of 6 percent tax under two headings on ride-sharing, the burden has now been added to the consumers. Now, when riding ride-shares like Tootle, Pathao, Uber, InDrive, and Yango, the fare will become 6 percent more expensive.
