Efforts by the Inland Revenue Authority of Singapore (IRAS) to get Grab and Uber to file the tax returns of their driver partners automatically will help private hire vehicle (PHV) drivers, especially for those who spend most of their working hours on the roads and tending to vehicle-related matters. As the nature of work is being disrupted and transforming, legislation, regulations and rules should continue to be reviewed and correspond to the new ways that businesses and individuals operate and work.
In this light, the National Private Hire Vehicles Association (NPHVA) calls on IRAS to review the allowable business expenses for PHV drivers so that they are taxed in a fair manner, like other businesses of a similar nature. For example, unlike taxis, PHV expenses such as fuel, vehicle rental fee, ERP expenses and other running expenses are at present not tax deductible. Where a PHV is owned by a driver, there are also other overheads such as repair, maintenance and vehicle insurance to consider.
NPHVA recognises the difficulties in providing tax deductibility if a vehicle is not primarily used for business. One possibility is to explore tax deductibility based on the mileage clocked on private hire driving, as practiced overseas. Nonetheless, NPHVA looks forward to a fairer approach in the treatment of income from PHV driving and stands ready to discuss this further with IRAS.
Mohd Randy
Executive Secretary
National Private Hire Vehicles Association
###
