The roll-out of value added tax (VAT) around the UAE has created some confusion and some businesses have been fined for failure to correctly implement the taxation system. 

A list of exempt services for VAT was released last year, which showed the exclusion of transportation (among other services). 

However, transport apps Careem and Uber have announced a price hike in regards to VAT. 

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The two services emailed customers on Thursday, informing them that a price hike would be implemented on services to combat the VAT being implemented on surrounding parts of the business. 

The two services are not raising the fees by 5%

But Careem has informed customers it will be increasing prices by 1% and Uber by 1.7%. 

Careem put a statement on its website 

Uber sent an email out to its customers 

Read: VAT UPDATE: Value Added Tax Will Have Little Impact On Residents