Taxi operators seek relief after earnings drop by 90 per cent in March

Gabungan Persatuan dan Syarikat-Syarikat Teksi Semenanjung Malaysia (GPST), that represents over 100 taxi companies, today appealed to the government to look into the woes of taxi drivers and taxi companies whose earnings dropped by 90 percent last month with the enforcement of the Movement Control Order (MCO).

Its President, Sheikh Mohd Shalahuddin Ayubi Kamal Azad SM Amin said, the fallout from the COVID-19 pandemic and MCO has resulted in immense challenges to both taxi companies, as well as taxi drivers.

To help alleviate the concerns and financial implications to taxi drivers, he said, its members have come out with three possible financial relief solutions during the MCO, which are subject to conditions in each taxi driver’s contract:

There are no taxi rentals, deferred taxi rentals, and/or discounted taxi rentals, he said in a statement today.

Thus, he urged the taxi drivers to meet and discuss with their respective taxi company representatives to determine which options are open to them.

“We also ask to consider additional subsidies from Social Security Organisation (SOCSO) to assist taxi companies to help their employees who are not drivers but also play a role in supporting the industry as a whole.

“Employees of taxi companies other than drivers are to accept minimum salaries for now rather than being retrenched or laid off,” he said.

In thanking the government for the one-off payment to taxi drivers, he said, GPST members will be grateful if the government could consider additional subsidies on top of the RM600 from the Social Security Organisation (SOCSO) to assist taxi companies to help employees who are not drivers, but also play a role in supporting the industry.

“This form of assistance will be able to help our members to sustain and keep their staff during this challenging time.

“At this point in time, employees of taxi companies who are not drivers are to accept minimum salaries for now rather than being retrenched or laid off,” he added.

Sheikh Mohd Shalahuddin suggested giving zero or minimum tax rates to taxi companies for the remainder of the year as it would take more than six months for taxi companies to recover.

Although some taxi companies do not fall under SME category (as their paid-up capital may be more than RM 2.5 million), he said benefits to SMEs should also be extended to all taxi companies regardless of their paid-up capital.

Prime Minister Tan Sri Muhyiddin Yassin when announcing the Prihatin Rakyat Economic Stimulus Package (PRIHATIN) on March 27 said e-hailing drivers will be given a one-off payment of RM500 each to ease their financial burden during MCO.

The aid was in addition to the one-off RM600 meant for taxi drivers, which is to start from April, announced in an earlier economic stimulus package by the previous administration. - BERNAMA