THE decision by the Government to lift the freeze on Licensed Taxi (LT) permits has raised concerns within the taxi industry, with operators warning it could create financial difficulties for new drivers.
Regent Taxis Pte Ltd managing director Harish Chandra said while the move might appear beneficial, it could place heavy financial pressure on individuals entering the industry.
He said drivers who obtained individual permits would initially be able to secure vehicles through loans, but sustaining the business could become difficult over time.
“If they get their own individual permits, in the first year, they will be able to run and get the loan, get the vehicle,” Mr Chandra said. “They will do the loan repayments, but by the second-third year, they wouldn’t have enough money to do even maintenance on the vehicle. And soon the vehicle will be off the road or parked somewhere off the taxi.
“Running a taxi business is not easy.”
He also questioned the availability of accurate data on the number of taxis currently operating in the country.
“Out of 8000 taxi permits issued in the country, the LTA has not done any audit on how many taxis are good and running on the public roads.
There is no data or statistics available on this, and here they are talking about issuing more taxi permits.” Mr Chandra said more consultation and education for industry stakeholders should have been carried out before opening up the permits.
Delana Taxis director Jope Tikoicina also raised similar sentiments. “Issuing more taxi permits means, more cars on the road,” he said. “With more taxis coming in now, the income of the current taxi drivers will be badly affected.”
