ABU DHABI // Undeterred by the risk of steep fines or jail terms, drivers of private vehicles are illegally ferrying passengers in Abu Dhabi and to other emirates.
Owners of these cars can be seen near the pedestrian bridge on Muroor Road across from the Abu Dhabi main bus terminal.
They either approach passers-by near the bridge and at the bus stop or shout “Dubai, Dubai” or “Mussaffah, Mussaffah”, offering passengers a cheap alternative to licensed taxis.
A driver, who identified himself as Ahmad, 40, from Islamabad, said a one-way trip to Dubai costs Dh150, compared to the Dh250 metered fare in a silver taxi.
The illegal services are popular because they are cheap. Fares can be as little as Dh10, compared with at least Dh50 for a one-way trip from Abu Dhabi to Mussaffah and Dh120 to Baniyas in a registered vehicle.
Department of Transport buses cost only Dh4 to Mussaffah or Khalifa City A, but the journey can take up to two hours.
“If you want to go to Khalifa City A or Mussaffah, I’ll charge you Dh40,” said Ahmad, who declined to say how much he made per day.
His friend Ali, who drives a Camry, said he can offer a full-day trip for Dh600.
“We are not operating illegal taxis but offer car lift services,” he said.
Although he has been fined Dh8,000, twice, that has not stopped him from picking up passengers.
Offenders face fines of between Dh5,000 or Dh10,000 and 30 days in jail – or both.
At 10am on Sunday, two women waiting for a Department of Transport bus number 190 or 195 to take them to Yas Waterworld were offered a lift by a man.
“We just ignored him,” said April Hamodiong, 28, a nail technician in Abu Dhabi. “We don’t usually entertain them because we know it’s illegal and not safe to ride in private cars”
At times, she said, she will share a ride with three other passengers from Khalifa City A to the capital in a private car driven by an acquaintance. Each passenger is charged Dh15 for the journey.
Her colleague Juneser Castil, 22, said she prefers public transport.
“I’m new to the city so I feel safer inside licensed taxis and public buses,” she said.
Naushad Mara, 33, a sales supervisor from India who has lived in the UAE for 17 years, agreed.
He was also at the bus stop waiting for bus number 302 or 304 to take him to Al Reef Villas.
“I can hear the drivers calling out passengers to Dubai and Al Ain,” he said, adding that the steep fines should serve as a deterrent to illegal operators.
Last year, inspection campaigns by Abu Dhabi Police and the Centre for Regulation of Transport by Hire Cars, or TransAD, uncovered the phenomenon of "smuggling passengers", where the owners of private vehicles transport passengers for a fee as their source of income.
The inspections, carried out during the first five months of last year, revealed 2,000 cases.
Many of those caught were repeat offenders, and TransAD has proposed amending the law to revoke the driving licence of any driver caught more than once.
TransAD and Abu Dhabi Police were not immediately available for comment.
Last year, TransAD warned the public not to use unauthorised taxis because the vehicles were not properly equipped for passenger safety and may not be insured. In addition, the drivers are not linked to an employer and cannot be easily prosecuted should any problems arise.
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Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
ENGLAND SQUAD
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Thu, Aug 30: UAE v Nepal; Hong Kong v Singapore; Malaysia v Oman
Sat, Sep 1: UAE v Hong Kong; Oman v Singapore; Malaysia v Nepal
Sun, Sep 2: Hong Kong v Oman; Malaysia v UAE; Nepal v Singapore
Tue, Sep 4: Malaysia v Singapore; UAE v Oman; Nepal v Hong Kong
Thu, Sep 6: Final
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If a business does not apply for the refund on time, they lose their credit.
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3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
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Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
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Final
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