The government in Taiwan is taking steps to protect independent taxi drivers from steep fees imposed by taxi companies. The Ministry of Transportation and Communications has put forward a set of new regulations following numerous complaints from vehicle owners. These owners have voiced their concerns about being required to pay excessive affiliation fees to secure the necessary licenses to operate as taxi drivers. In the city of Taichung, for instance, some drivers reported fees reaching up to NT$350,000.

With the proposed changes, taxi companies would no longer be able to levy fees that are not authorized by the authorities or explicitly stated in contracts. Additionally, the companies would be prohibited from compelling drivers to purchase vehicles through specific dealers or to arrange loans and insurance with particular financial institutions. This move aims to curb the undue financial pressures on drivers and ensure fairer practices in the industry.

To enhance transparency and ensure compliance, taxi companies would need to seek official approval for their fee structures and make this information available on their websites. The authorities would also gain the power to intervene, requiring companies to cease any improper fee collection and mandate refunds for any overcharges incurred by drivers. Both drivers and companies would be obliged to keep records such as contracts and receipts for potential inspection, promoting accountability in the sector.

In a bid to optimize resource allocation, the proposed regulations suggest reducing the minimum period for reassigning an unused taxi quota from three years to one year, with an additional one-year extension possible. The new rules are anticipated to come into effect in August. Taxi companies that fail to comply could face penalties, including fines up to NT$90,000, partial suspension of operations, or in more severe cases, the revocation of their operating licenses.