In a bid to improve the lot of individual budget taxi owners, who are facing difficulties arising from increased operating costs and, in many cases, utilising vehicles that have exceeded their economic life, the Government is proposing that assistance be given to them, to both take care of their welfare and improve taxi services in the country.

This assistance will include a 100% excise duty and sales tax exemption on the purchase of locally-made taxis, as well as exemption from payment of excise duty and sales tax on taxis sold or transferred of ownership after seven years.

The Government also proposes to abolish the road tax on all individually owned budget taxis. It will also provide a subsidised interest rate of 2% on a full loan to purchase new locally-made taxis. The loan scheme is to be managed by BSN, and will be offered for a period of two years, beginning January 1, 2012.

Finally, it will provide assistance of RM3,000 for the disposal of old taxis exceeding seven years but less than 10 years old; for taxis 10 years and above, this sum will be RM1,000. The assistance is being granted with the proviso of purchasing a new locally-made taxi, again for a period of two years, starting January 1, 2012.

For all the above assistance, private budget taxi owners are expected to benefit by about RM7,560. This assistance will also be extended to individual owners of hired cars.