Sunday, May 20, 2012, 3:47 AM CST – China

Media Focus

Bitter Cabbies

December 2011 Issue | by News China Magazine

China Economic Weekly October 8, 2011

A wave of strike action in response to rising gas prices and stagnant wages has crippled taxi services across China, with so-called “management fees” blamed as the root of drivers’ grievances. Since the Chinese government introduced regulations 20 years ago requiring that only registered taxi com­panies could get taxi operation licenses to control the growth of a private market, taxi drivers have been forced to rent or buy cars from companies which then charge them monthly management fees equivalent to half a driver’s total income. Critics suggest the government lift the ban and design another model to manage taxis, an essential component of China’s trans­port infrastructure, to prevent the further exploitation of drivers.

Tags: tax services, taxes, transportation, government regulation

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