10 TAXI
Deregulation of the taxi business
The taxi business is subject to licensing regulations, economic regulations on taxi fares, and technical regulations on operation management and safety, in accordance with the Road Transportation Law and related legislation / directives. The government is relaxing the standards in the economic regulations, with the objectives of promoting competition among taxi companies, diversifying the combinations of fares and services, and increasing benefits to taxi users. More specifically, the government approved and implemented the Deregulation Action Program in March 1995 stipulating the relaxation of (1) regulations on taxi fares and the number of taxis allowed to operate, (2) examination criteria for the licensing of owner-driver taxis, and (3) the regulations on operation territory. With regard to (1) regulations on taxi fares, the Director-General of the Road Transport Bureau issued a directive in 1993 abolishing the system of uniform taxi fares within each operation district. To take the deregulation move even further, a more flexible taxi fare band system was introduced in 1997. Supply-demand adjustment regulation, part of the licensing criteria governing the overall number of taxis, has also been eased to offer greater freedom to taxi businesses in deciding the size of their fleets. The relaxation of (2) examination criteria for the licensing of owner-driver taxis is seen in the revision to the test on geographical legislation, which had been criticized as too difficult. For (3) operation areas, boundaries drawn in line with municipal borders have been enlarged to accommodate the actual movement of passengers, giving more operational freedom to taxi businesses. In December 1996, the Ministry of Transport decided to abolish the supply-demand adjustment regulation in all transportation areas except the harbor transport business. The decision will be implemented in the taxi business around the year 2002. Details of implementation have been under consideration since 1997 by the Road Transport Subcommittee of the Council for Transport Policy, which is expected to issue its recommendations in April 1999.
