Drivers association calls for fair taxes
Grab seen on the road, taken at Bishan street 13. TODAY file photo
The association representing private-hire car drivers yesterday called on the taxman to review allowable business expenses so that drivers are taxed fairly.
Allowable business expenses are deducted from individuals’ business incomes to cut the taxable amount.
The National Private Hire Vehicles Association’s (NPHVA) call comes two days after The Sunday Times reported that the Inland Revenue Authority of Singapore (Iras) had approached ride-hailing companies Uber and Grab to work out an arrangement for drivers to file their tax returns automatically.
In a press statement yesterday, NPHVA executive secretary Mohd Randy said such efforts would help private-hire vehicle drivers, especially those who spend the bulk of their working hours on the road or tending to vehicle-related matters.
“As the nature of work is being disrupted and (is) transforming, legislation, regulations and rules should continue to be reviewed and correspond to the new ways that businesses and individuals operate and work,” he said.
Unlike taxi drivers, for instance, expenses incurred by private-hire vehicle drivers — such as fuel, vehicle-rental fees, Electronic Road Pricing expenses, and other expenses from running the vehicles — are not tax-deductible, he said.
Drivers who own a private-hire vehicle also have to grapple with overhead costs, such as for repairs, maintenance and vehicle insurance.
Some vehicles may not be used primarily for business, and Mr Randy suggested tax deductibility could be based on the mileage clocked from driving for private-hire, as is the practice overseas.
He added that the association looked forward to a “fairer approach in the treatment of income from private-hire vehicle driving, and stands ready to discuss this further with Iras.”
KENNETH CHENG
