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Taiwan Sets Regulations Boosting Economic Security for Taxi Entrepreneurs

by admin477351

Taiwan’s Ministry of Transportation and Communications is taking steps to safeguard independent taxi drivers from hefty fees imposed by taxi companies. The initiative comes in response to grievances from vehicle owners about the exorbitant affiliation fees required to access taxi operating licenses, with the most extreme cases reported in Taichung where drivers faced charges up to NT$350,000.

The proposed regulations would forbid taxi companies from demanding unauthorized fees unless they have been sanctioned by governing authorities or clearly outlined in contractual agreements. Furthermore, companies would not be allowed to compel drivers to purchase vehicles from specified dealers or to secure loans and insurance through particular financial institutions.

In an effort to enhance transparency, the new rules stipulate that taxi companies must seek official approval for any affiliation fee standards and make this information publicly accessible on their websites. Additionally, authorities would gain the power to halt improper fee collections and mandate refunds for any excess charges imposed on drivers.

Both taxi companies and drivers would be required to maintain accessible records, including contracts and receipts, for potential inspections. The proposal also includes a provision to reduce the minimum duration before an unused taxi quota can be reallocated, shortening it from three years to one, with the possibility of a one-year extension.

Set to be implemented in August, the regulations carry penalties for non-compliance. Companies found violating these rules could incur fines up to NT$90,000, face partial operational suspensions, or, in critical situations, risk losing their operating licenses altogether.

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