Major New Traffic Regulations Take Effect: Nationwide Legal Amendments Impose Fines up to NT$90,000 and License Revocation

For years, Taiwan's taxi industry has been plagued by reports of companies imposing high, unjustified 'listing fees' or 'rights fees' on affiliated drivers, with some regions demanding exorbitant amounts up to NT$350,000—severely infringing on drivers' rights. To eradicate such exploitative practices, the Ministry of Transportation officially announced regulatory amendments on August 11, strictly prohibiting companies from collecting any unapproved or non-contractually stated fees. Any overcharged amounts must be fully refunded. The new system took effect on August 13, with violators facing fines up to NT$90,000. In severe cases, companies may face partial suspension of operations or even revocation of their business licenses.

Empty Quotas Turned into Speculative Assets? Local Mismanagement Fuels Black Market for Affiliation

Currently, Taiwan has approximately 100,000 taxi permits, with about 93,000 actively in operation, leaving nearly 6,000 vacant slots awaiting renewal through the 'replace old with new' program. Due to long-standing failures by local governments to dynamically review and manage permit allocation, many of these originally free-to-apply permits have remained under the control of major taxi companies.

Some operators treat these permits as private, valuable assets, buying and selling them freely. They charge new, resource-limited drivers exorbitant 'affiliation listing fees' ranging from tens of thousands to hundreds of thousands of NT dollars, severely distorting market order.

Ministry Draws a Hard Line: Four Strict Penalties to Ban Forced Consumption by Companies

To restore industry order and respond to drivers' appeals, the Ministry of Transportation officially released amendments to Article 91-1 of the 'Motor Transport Business Management Rules' and Article 6 of the 'Motor Transport Business Review Guidelines,' clearly outlining four major prohibitions for taxi companies:

1. Ban on Unauthorized Fees: Companies must not charge drivers any fees not approved by authorities or not stipulated in contracts. Any overcharged amounts must be fully refunded.

2. Prohibition of Forced Vehicle Purchases: Companies must not force or require drivers to purchase specific vehicles.

3. Ban on Tied Loans and Insurance: Drivers must not be forced to obtain loans, vehicle insurance, or other services from designated institutions.

4. Information Transparency and Record-Keeping: Establish a standardized review and public disclosure mechanism for administrative fees. Companies must properly retain all service contracts and receipts for inspection by authorities at any time.

Additionally, to address permit hoarding, the amendment shortens the replacement period for taxi 'replace old with new' permits from the original three years to just one year (with a maximum one-time extension of one year under justified circumstances), preventing companies from artificially manipulating market prices by hoarding idle permits.

New Taxi Regulations Take Effect August 13: Fines Up to NT$90,000, Suspension or License Revocation for Severe Violations

The Ministry emphasizes that the penalties under the new regulations are extremely strict. Starting August 13, if a company is found to have engaged in improper fee collection, permit resale, or forced consumption and has not refunded overcharged amounts, authorities will impose fines ranging from NT$9,000 to NT$90,000 under the 'Highway Act.' If the company refuses to rectify or the violation is severe, it may be legally ordered to 'suspend partial operations' or even have its 'business license revoked,' demonstrating the government's firm determination to rectify the chaotic affiliation practices in the taxi industry.

Frequently Asked Questions (FAQ)

Q1: What are the key points of this taxi regulation amendment?

The main amendments to the 'Motor Transport Business Management Rules' and 'Motor Transport Business Review Guidelines' explicitly prohibit companies from charging any unauthorized or non-contractually stated listing or administrative fees. It also bans companies from forcing drivers to purchase vehicles or requiring them to use designated loan or insurance services.

Q2: What should drivers do if a company has already overcharged a 'listing fee'?

Under the new law, companies must fully refund all overcharged or unauthorized fees. If a company refuses to refund, drivers can file a complaint with the local transportation bureau or the Ministry of Transportation. Once verified, the company will face fines from NT$9,000 to NT$90,000, and in the worst case, have its business license revoked.

Q3: How has the replacement period for taxi 'replace old with new' permits changed?

To prevent companies from hoarding permits and artificially inflating prices, the amendment shortens the replacement period for taxi and tour bus permits from the original three years to one year. If a replacement cannot be completed within one year for justified reasons, only one extension is allowed, with a maximum duration of one year.

Q4: When does the new system take effect?

The announced management rules and penalties officially take effect on August 13, 2026.