Taxi drivers, companies see earnings plunge 90% during MCO

(NST) – The association of taxi companies known as Gabungan Persatuan dan Syarikat-Syarikat Teksi Semenanjung Malaysia (GPST) today appealed to the government to look into the wellbeing of taxi drivers and companies, many of which saw their earnings drop by up to 90 per cent last month.

In a statement today, its president Datuk SM Shalahuddin Ayubi Kamal Azad said the fallout from the Covid-19 pandemic and consequent implementation of the Movement Control Order (MCO) has resulted in immense challenges to both taxi companies and drivers.

“Hence, we are seeking the government’s assistance to consider; first, zero or a minimum tax rate for taxi companies for the remainder of the year, as it will take more than six months for taxi companies to recover.

“Second, to consider additional subsidies on top of the RM600 from the Social Security Organisation (Socso) for taxi companies to help employees who are not drivers, but who also play a role in supporting the industry as a whole.

“This form of assistance will help our members sustain their staff during this challenging time, as currently, non-driver employees (must) accept minimum salaries rather than be retrenched or laid off.

“Lastly, that assistance to small-and-medium enterprises (SMEs) also be extended to all taxi companies regardless of their paid-up capital, as some taxi companies do not fall under the category, hence will be not be eligible for any government assistance to SMEs,” he said.

Shalahuddin Ayubi added that some taxi companies will go under if the situation extends for more than two months.

“In March, taxi companies and drivers have seen an over 90 per cent drop in revenue and we are expecting zero or minimal revenue for the next few months, even after April.”

Meanwhile, Shalahuddin Ayubi said that to help alleviate the concerns and financial hardships of taxi drivers, GPST has come out with three possible financial relief solutions during the MCO.

“The solutions include no taxi rentals, deferred taxi rentals, and/or discounted taxi rentals.

“All these, however, are subject to conditions in each taxi driver’s contract,” he said, adding that taxi operators who are not GPST members could also take up the offer.

He said each taxi driver has been urged to meet and discuss the matter with their respective taxi company representative to determine which option is available to them.

“As much as possible, our members will do their best to support the livelihood of our taxi drivers, on whom we also rely to support the public transportation infrastructure of the country.”

GPST also reiterated that there will be no repossession of taxis during the MCO period.