Private-hire drivers should be taxed with 'fairer approach', says NPHVA

Private-hire vehicle drivers should be taxed 'in a fair manner, like other businesses of a similar nature', said the National Private Hire Vehicles Association (NPHVA) on Tuesday (19^th September). In a statement, it called on the Inland Revenue Authority of Singapore (IRAS) to review the allowable business expenses for such drivers. NPHVA Executive Secretary Mohd Randy said, "Unlike taxis, private-hire vehicle expenses such as fuel, vehicle rental fee, ERP expenses and other running expenses are, at present, not tax deductible."

This comes after The Sunday Times (17^th September) reported that the IRAS had approached two ride-hailing firms, Uber and Grab, to work out an arrangement for the drivers to file their tax returns automatically. Both firms have amassed over 40,000 drivers combined since arriving here in 2013. While the NPHVA said the IRAS' efforts to allow e-filing of tax returns will help drivers, especially those who spend most of their working hours on the roads or tending to vehicle-related matters, it added that these regulations should continue to be reviewed as well.

"Where a private-hire vehicle is owned by a driver, there are also other overheads such as repair, maintenance and vehicle insurance to consider," he added. But Mr. Randy conceded that there may be difficulties providing tax deductibility if a vehicle is not used primarily for business. "One possibility is to explore tax deductibility based on the mileage clocked on private-hire driving, as practiced overseas," he said. He added that the NPHVA looks forward to 'a fairer approach in the treatment of income from private-hire vehicle driving, and stands ready to discuss this further with the IRAS'.