The boom in Uber cars in major cities, including Hanoi and HCM City, during the past three years has pushed many taxi firms into difficulties (Photo: tienphong.vn) HCM City (VNS/VNA) - The Ho Chi MinhCity People’s Court has dismissed a suit by the Dutch-based ride-hailingcompany Uber International Services Holding B.V against the city tax departmentseeking remedy against a claim for back taxes.
VNExpress electronic newspaper reported thecourt said Uber Vietnam, a subsidiary of Uber International, “does not have therequired legal status for such a case”.
In September, the department ordered Uberto pay 66.68 billion VND (2.94 million USD) in tax arrears and penalties fortax evasion by December 23.
But the company only paid up 13.3 billion VND(586,000 USD).
The department then asked five local banksto appropriate more than 53.38 billion VND (2.35 million USD) from Uber’saccounts by January 10.
Uber then filed the lawsuit against thedepartment.
On December 29, the department received anotice from the court to put on hold its appropriation from Uber.
Now that the case has been dismissed, thetax authorities will proceed to collect the amount.
VNExpress electronic newspaper reported thecourt said Uber Vietnam, a subsidiary of Uber International, “does not have therequired legal status for such a case”.
In September, the department ordered Uberto pay 66.68 billion VND (2.94 million USD) in tax arrears and penalties fortax evasion by December 23.
But the company only paid up 13.3 billion VND(586,000 USD).
The department then asked five local banksto appropriate more than 53.38 billion VND (2.35 million USD) from Uber’saccounts by January 10.
Uber then filed the lawsuit against thedepartment.
On December 29, the department received anotice from the court to put on hold its appropriation from Uber.
Now that the case has been dismissed, thetax authorities will proceed to collect the amount.
[Uber sues HCM City Tax Department]
Minister of Transport Nguyen Van The said Vietnam should learn from theEuropean Union (EU) to manage the operation of companies such as Uber and Grabto ensure fair competition for traditional taxi firms.At a conference of the General Directoratefor Road of Vietnam this on January 3, The said the management of Uber and Grabremained controversial worldwide.
However, in December, the EU’s top courtruled that Uber should be classified as a transport service and regulated likeother taxi operators despite Uber’s argument that it was simply a digital appacting as an intermediary between drivers and passengers.
“We should learn from the EU to manage thisservice,” The said, urging relevant management authorities to raise proposalsto manage Uber and Grab following the established regulations and ensure ahealthy competition environment.
HCM City Taxi Association recently proposedthat the transport ministry regulate Uber and Grab as taxi operators.
The association also suggested that Uberand Grab be banned from using foreign capital sources to offer promotions aimedin getting a share of the taxi industry, and then reporting losses to avoidpaying taxes.
In a related move, taxi firm Anh Duong VietnamCompany (Vinasun) sent a document to the Ministry of Transport proposing thatGrab and Uber should also be regulated as taxi operators.
Reuters reported that Uber has transformedthe taxi industry since its launch in 2011 and currently operates in more than600 cities globally.
The boom in Uber and Grab cars in majorcities, including Hanoi and HCM City, during the past three years has pushedmany taxi firms into difficulties. - VNA
VNA
