Govt won't subsidise taxi line, minister says

Transport Minister Mohamed Ameen has stated that the government will not provide budget subsidies for the new city taxi line.

The service, to be operated by Maldives Transport and Contracting Company (MTCC), will be a self-sustaining initiative.

At the parliament's sitting on Wednesday, Minister Ameen clarified that no further budget allocations will be made beyond the initial capital provided to MTCC to launch the service.

“We are not planning to subsidise MTCC. This is a self-sustaining operation,” he said.

He added that unlike the RTL bus service, the taxi operation will not rely on the national budget once operational.

MTCC has been tasked with importing 100 fuel-free electric vehicles for the service. While the cost of the vehicles was not disclosed, Ameen noted that the cars will be suitable for operating in the narrow streets of Malé.

According to the minister, the project is not aimed at displacing current taxi drivers. He said the new line is intended to meet demand rather than replace existing services. He added that:

Minister Ameen said complaints have been raised by public transport users about the lack of a reliable and organised taxi service. The government aims to introduce a system that addresses these concerns by creating a more structured service.

“This will standardise the taxi service. The standard will be raised,” he said.

He also stated that the reform will not result in job losses among current taxi drivers. Freelance and registered drivers will be eligible to join the new platform, and individuals meeting the requirements for new taxi registration can continue to apply.

“We will not close this to private service providers,” Minister Ameen added.