Profits or market share? Vietnam's new tax regime puts ride-hailing firms at a crossroads

Source: Internet Archive

On December 5, Vietnam amended the tax structure for ride-hailing companies such as Grab, Gojek, and Be. Under the new regime, the ride-hailing companies will have to pay a 10 per cent value added tax (VAT) per trip, compared with 3 per cent earlier.

While the new tax is aimed at levelling the playing field with traditional taxi firms, the quantum of the VAT is big enough to impact the profits of the ride-hailing companies if not passed on, say experts.

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