Amid controversies and protests by taxi drivers, the Ministry of Transportation and Communcations (MOTC) yesterday confirmed that it has denied Uber’s request to operate in the nation, after it asked to be recognized as a new type of transport service and to be exempt from paying taxes.
The ministry has been fining the San-Francisco-based operator and the drivers it recruited since September last year for illegally offering taxi services in Taiwan.
Statistics from the -Directorate-General of Highways (DGH) showed that the government issued 164 tickets to Uber between September and November last year for such violations, with the fines totaling more than NT$21.25 million (US$672,213).
A total of 163 tickets have also been issued to drivers recruited by Uber, with the penalties reaching NT$8.23 million. So far, Uber has paid only NT$4 million of its fines.
It has tried to appeal the fines with the ministry’s Appeals Committee.
The Department of Railways and Highways said that Uber has proposed that the service it offers be categorized as a new type of transport service, apart from the three types of the transport services recognized by the Transportation Management Regulations (汽車運輸業管理規則).
The ministry also said that the company asked to be exempt from any tax obligations as Uber said that its drivers do not offer the service on a regular basis.
The request was denied by the ministry, which said that Uber was simply finding excuses for its violations.
In response, Uber said that it has been paying taxes to the government in Taiwan. It also said that the proposal it submitted to the ministry aims to address passenger safety, certification of the drivers and three other important issues involved in the service. The proposal did not mention the tax issue, it said.
“We hope that the officials at the ministry will seriously consider our proposal with a view to providing more options to consumers,” the company said in a statement. “We look forward to working out a more innovative solution with the government under the current legal framework.”
Previously, the ministry had suggested Uber file an application to become a transport service provider.
The operator was also asked to compete fairly with other taxis in the market and pay taxes accordingly, but Uber did not accept those terms, the ministry said.
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