The Egyptian Tax Authority has announced plans of imposing corporate withholding taxes on car-hailing phone applications, Uber, Careem, and Ousta, according to al-Borsa.

This comes a few days after the government voiced its support for Uber and Careem in the face of recent white taxi protests.

The Tax Authority has also requested that the car services submit their bookkeeping as well as a list of their drivers, according to Egyptian Streets. The reason behind this request is to ensure the accurate taxation of cars used for commercial purposes. Additionally, this move is expected to regulate the companies’ activities and ensuring the proper functionality of their taxation system.

The Authority’s decision was received with readiness by the companies, who expressed their agreement to accept any taxation systems proposed by the Egyptian government during a meeting with Ghada Waly - Social Solidarity Minister.

The two car app companies even made suggestions for organising their activities throughout Egypt during the meeting. The meeting was also attended by the State Committee spokesman, headed by the Minister of Justice and the membership of the Ministries of Transportation, Finance, Social Solidarity, Investment, Local Development, as well as a representative of the Ministry of Interior, in order to look into the issue, according to al-Borsa.

It was also stated by Head of the Egyptian Tax Authority, Abdul Monem Matar, that in accordance with tax evasion laws, if one of the companies was discovered to have been hoarding portions of the profit, such companies will be referred for tax evasion.

According to al-Borsa, Nader al-Batrawy, Founder and Board of Directors Chairman of Ousta, also added that the Traffic Department should quit its inexplicable hostility against Uber and Careem, especially that the companies have been offering special services to the local market.