If you’re planning to take an Uber home after a long night of Canada Day revelry, don’t be surprised if your tab is higher than usual – and not just because of the company’s infamous surge pricing.
As of July 1, sales tax – HST in Ontario and GST in Alberta –will be added on top of regular Uber fares.
The tax, announced in the Liberal government’s federal budget in March, seeks to bring ride-sharing business under the same tax rules as conventional taxis.
READ MORE: Uber asks Canadians to call their MPs when asked to pay taxes
Uber Canada slammed the measure as a “tax on innovation,” saying that rather than imposing new taxes on Uber drivers, the federal government should have leveled the playing field by extending small business tax breaks to taxi drivers.
An Uber FAQ page for drivers counsels them to remind passengers caught off guard by higher trip fares that all fares will henceforth include 13 per cent HST in Ontario and 5 per cent GST in Alberta.