Mobility, taxes and trust

ON any weekday morning in Pakistan’s major cities, the same scene plays out thousands of times. A student books a bike ride to avoid missing class. A working woman chooses app-based mobility because it feels safer and more dependable than waiting by the roadside. A driver logs in early, hoping to make enough trips before fuel prices shift again. These are not luxury transactions. They are now part of how our cities function. Yet despite its growing importance, the policy framework around the sector still treats it as an optional convenience rather than essential economic infrastructure. Rethinking one-size-fits-all taxation: This gap is most visible in how the sector is taxed. Pakistan’s current approach applies the same tax treatment regardless of how a platform shares value within its ecosystem. A company charging a heavy 25 to 30 per cent commission is treated exactly the same as one operating on a leaner structure that leaves significantly more in drivers’ hands. That misses a critical opportunity. Taxation should not only generate revenue; it should also encourage market behaviours that strengthen the economy. In ride-hailing, that means rewarding models that protect driver earnings, keep fares competitive and expand access for riders. The case for commission-based taxation: A more progressive framework linked to platform commission rates would do exactly that. Platforms operating below a 10pc take rate, where drivers retain the strongest share of earnings should face the lowest tax burden. Higher-commission models should move into progressively higher tax tiers. The economic logic is straightforward. When drivers keep more of what they earn, supply remains stable and service quality improves. Riders benefit from more competitive fares and more reliable availability. Greater usage creates more trips, stronger labour mobility, and wider economic participation across cities. This is especially relevant in Pakistan, where fuel prices, traffic congestion, varying t