Uber slams new tax announced in federal budget

UberCanada is criticizing the federal government's move torequire ride-hailing companies to pay 13 per cent HST as bad for business, customers and the environment.

The change was announced in Wednesday's federal budgetand is set to go into effect July 1.

• BUDGET 2017 What's in it for Ottawa-Gatineau

"This new tax on innovation would hurt over a million Canadians who use ride-sharingto earn income and get around their cities," said Uber Canada general manager Ian Black in a statement.

"At a time when Canadians spend far too much time stuck in traffic ... we should be supporting policies that make sustainable transportation more affordable, not more expensive."

But an Uber driver interviewed while waiting for fares near the Ottawa International Airport had a different take.

The man, who did not want to provide his name, told CBC he didn't think the added tax willhurt business.

"I don't know how much peoplepay for their taxis, but it will still be cheaper [to use Uber]just based on my gut, because taxis pay much more for their commercial car insurance," the driversaid.

Taxi companies wanted level playing field

HanifPatni, president and CEO of Ottawa taxi dispatcher Coventry Connections, saidhe's pleased with the decision to charge HST forride-hailingcompanies likeUber, which forced its way into the local market in 2014.

"What we have always said is we want a level playing field where they have the same regulations that we have and they have to pay the same taxes that we have to pay," Patni said.

JoshDannenberg,who uses both Uberand traditional taxis, said he's fine with the new tax.

"Everything else is taxed and Uber is pretty much just like taxis," he said.

But anotherUberrider said the taxwill make Uber less appealing.

"I think it's a little disappointing because we use it because it's cheaper," saidAnnaleeYerxa.

The new tax on ride-hailing services won't add much to federal coffer, with just $3 million in extra revenue predicted in2017-18.